The Central Bank (CB) has given Covid-19 hit businesses and others more time to apply for the four percent Working Capital Loan scheme.
The deadline has been extended till September 30, 2020. The new scheme - Saubagya Covid-19 Renaissance Loan Scheme Facility - was introduced to help businesses and others during the pandemic.
The islandwide curfew and the closure of international airports in March this year to combat the spread of the virus brought the tourism industry to a virtual standstill. The loan scheme was hailed by many people.
The CB has already approved loans to the tune of Rs.100,017 million for 36,489 applicants.
“Of the approved loans, licensed banks have already disbursed over Rs. 68.5 billion among 25,365 affected businesses and others islandwide as at August 18, 2020,” according to the CB media release. Fifty percent of the approved loans were given to businesses in the services sector, 34 percent of which were granted to businesses in the industry sector and 16 percent for the agriculture sector.
Under phase 3, the CB hopes to provide working capital loans to businesses, including self-employment and others who were affected by the virus outbreak. The CB in consultation with the Government hopes to introduce the loans at a interest rate of four percent annually, with a repayment period of 24-months including a grace period of six months.