Central Bank extends deadline of application for Working Capital Loan Scheme

Aug 21, 2020 (LBO) – The Monetary Board of the Central Bank has decided to extend the deadline of 4% Working Capital Loan Scheme.

Accordingly, COVID-19 affected businesses and individuals can submit their loan applications under this facility to respective licensed banks until 30th September 2020.

Meanwhile, the Central Bank surpassed the milestone of Rs. 100 billion loans on 18th August 2020, approving Rs.100,017 million worth of loans submitted by 36,489 applicants under this facility.

Out of approved loans, licensed banks have already disbursed more than Rs. 68.5 billion among 25,365 affected businesses and individuals island-wide as of 18th August 2020.

Out of Rs. 100 billion approved under the Scheme, 50 percent has been provided to businesses in the services sector, led by trade services, while distributing 34 percent and 16 percent among businesses in the industry sector and the agriculture sector, respectively.

The Central Bank in consultation with the Government introduced the Saubagya Covid-19 Renaissance Loan Scheme Facility in 3 phases to provide working capital loans at the interest rate of 4% per annum, with a repayment period of 24-months, including a grace period of 6-months.

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