CB extends working capital loan grace period | Sunday Observer

CB extends working capital loan grace period

8 November, 2020

The Central Bank (CB) has extended the grace period of the four percent Working Capital Loan Scheme from six  to nine months  having identified the national importance of revamping businesses affected by the pandemic.

The bank  in consultation with the Government, implemented the Saubagya Covid-19 Renaissance loan facility in three phases to provide working capital loans at 4% per annum, with a repayment period of 24-months, including a grace period of six months. 

However, it is observed that most of the borrowers have experienced difficulties in revamping their businesses as expected, due to the second wave of the pandemic, the Central Bank stated in a media release. 

Therefore, having considered the importance of facilitating and encouraging borrowers to repay the loans without failure, the CBSL has extend the grace period applicable for the loans registered under Saubagya Covid-19 Renaissance Facility by another three  months. Beneficiaries of these working capital schemes who wish to receive a grace period of nine months need to send a written request to their banks.