NDB lends over Rs. 4 billion under Saubhagya loan scheme | Sunday Observer

NDB lends over Rs. 4 billion under Saubhagya loan scheme

NDB Bank has approved over Rs. 6.5 billion in funds for over 1,000 applications through the Central Bank of Sri Lanka (CBSL) under the ‘Covid-19 Saubhagya Loan Scheme’ at the rate of 4% p.a in a continuing demonstration of the Bank’s commitment in supporting the economic recovery of the country during this post pandemic era.

Having fully exhausted the funding quota allocated to the bank under Phase 1, NDB is currently in the process of approving facilities both under Phase 11 - Covid-19 Renaissance facility and Phase 111 - Saubhagya Coid-19 Interest Subsidy and Credit Guarantee Scheme.

The Central Bank of Sri Lanka implemented the Saubhagya loan scheme in April 2020 to support businesses in their post-pandemic recovery which will be granted at 4% per annum to Coviod-19 impacted companies up to a maximum limit of Rs. 50 million per company under the three phases to meet immediate working capital requirements.

NDB has currently received approval from the CBSL for 1093 applications to the total value of Rs. 6.8 billion. Out of approved loans over Rs. 4.5 bn loans have so far been released approximately among 778 beneficiaries covering all the districts including North and East and the arrangements are being finalized to release the rest of the approved loans without a delay. Loan registration of the Covid-19 Saubhagya loan scheme is to be completed by the 31st of August 2020.

In September 2020 Bank is to introduce another Refinancing working capital loan scheme to the Micro Small and Medium Sized Enterprises “Emergency Response Facility” implemented by the Department of Development Finance of the Ministry of Finance, Economy and Policy Developments under the funding sponsorship of Asian Development Bank. Eligible enterprise can avail maximum of Rs10Mn permanent working capital loan facility repayable over 03 years period including a grace period of 06 months at a concessionary rate of interest approximately 6%. NDB Bank’s “NDB Jayagamu Sri Lanka” initiative which was introduced in order to lend a helping hand to the country’s exporters and innovators via financial and non-financial methods is currently in the process of filling a vacuum that exists in the market today in empowering upcoming entrepreneurs, exporters and innovators which is essential to help set the country on a new growth trajectory.

The Bank, which is the fourth largest listed commercial bank in Sri Lanka with a network of 113, is one of the fastest growing banks, having had a cumulative average growth rate (CAGR) in advances by 21% and in deposits by 25% in the past four years.

From its inception, NDB Bank, along with the NDB Group has been a catalyst in the development of the nation, strengthening and empowering entrepreneurs, corporates and individuals from all strata of the economy.