Seylan Bank Accelerates MSME Lending (Athahitha) with New Government-Backed Schemes

Seylan Bank, in collaboration with the Government of Sri Lanka (GoSL), has reinforced its commitment to Micro, Small, and Medium Enterprises (MSMEs) by expediting loan disbursements through a combination of direct lending and innovative guarantee schemes. Seylan Bank ranks among a careful selection of financial institutions chosen to support the initiative’s MSME growth in the country.

Funded by the GoSL, this Loan Scheme is designed to serve as a catalyst for the MSME sector, unlocking its potential and propelling it towards unprecedented levels of growth. Priority sectors include manufacturing, tourism, agriculture, apparel, and export-oriented industries. The loan scheme is a flexible financing option designed to back the aspirations of entrepreneurs who will drive innovation, job creation, and community upliftment. Faster disbursements aim to advance growth for MSMEs and, in turn, for the national economy.

This Loan comes with a maximum loan amount of Rs 25 million, offering businesses the flexibility to meet their diverse needs. With a generous maximum tenure of ten years and an attractive interest rate of 7%, this scheme is tailored to address the unique challenges faced by MSMEs. 

Through the National Credit Guarantee (NCGIL) programme, up to 67% of qualifying loans are secured by the guarantee scheme, while borrowers pay a guarantee fee of 1% annually, based on their risk profile. 

Recognizing the importance of female-led enterprises, the Liya Shakthi Guarantee Scheme has been launched under the National Credit Guarantee Institution Ltd. (NCGIL) to provide enhanced coverage of up to 80% of the loan amount, compared to the standard 67%. This ensures that women-owned and women-led MSMEs gain stronger financial backing, helping them overcome traditional barriers to credit access and scale their businesses with greater confidence.

MSMEs will have the opportunity to apply for this Loan Scheme through Seylan Bank. This financial boost will be allocated for specific purposes, the acquisition of assets such as machinery, equipment, or furniture to facilitate business expansion and enhance productivity. Additionally, the loan can be utilised for the introduction of new or advanced technologies, new constructions, constructions for expansions, and business refurbishments.

This Re-energize loan scheme aligns with Seylan Bank's dedication to supporting the business community and contributing to the overall economic development of Sri Lanka. The initiative stands as a beacon of hope for MSMEs, empowering them to reach new heights and contribute significantly to the nation's economic resurgence.