The Central Bank together with the Government launched the ‘Saubagya Covid-19 Renaissance Loan Scheme’ to provide working capital loans at four percent interest to businesses adversely affected by the Covid-19 outbreak, through Licensed Banks, thereby supporting the revival of economic activity in the country.
A release issued by the Central Bank on Friday stated, ‘This Loan Scheme is available for Covid-19 affected businesses with an annual turnover below Rs. 1 billion, including self-employment and individuals.’
The Rs. 1 billion limit of the annual turnover will not apply to businesses engaged in tourism, export and related logistical supplies.
The Loan Scheme which has been implemented in three phases, is expected to disburse Rs 150 billion in working capital loans at the rate of 4% per annum.
The loan facilities to be distributed among 20,240 businesses under the Loan Scheme as of July 2, 2020 exceeds Rs. 53 billion. These loans carry a concessional interest rate of 4% per annum with a repayment period of 24-months including a grace period of six months. The Central Bank has approved 13,926 loans amounting to Rs. 28 billion under Phase-I of the Loan Scheme implemented from April 1, 2020.
Of the approved loans, Licensed Banks have already disbursed over Rs. 21 billion among 10,270 affected businesses and individuals island wide as of July 2, 2020.
The Central Bank has approved 6,314 loans amounting to Rs. 25 billion distributed among 6,314 businesses and individuals under Phase-II implemented from June 19, 2020.