The Government Information Center

1) Special Loan Scheme for Garment Industries – SME Sector
The Ministry of Finance and Planning has developed a programme to provide financial assistance to uplift the SME Garment industry through the Lankaputhra Development Bank.

Eligible Criteria

• Should be a an ongoing operational factory (not a closed factory)
• Located outside Colombo District
• Should be a Direct Exporter ( Sub Contactor may be considered subject to documentary proof)
• Recommendation required by a committee consisting of Clothing Industry Training Institute(CITI) and Joint apparel Association Forum (JAAF)
• Employment opportunities – Maximum 350, minimum 10
• Movable Assets value – less than Rs. 30Mn
• Annual Turnover – less than Rs. 100 Mn
  

Eligible Loan Categories

• Modernize factory building
• Upgrade machinery and purchase of new machinery

Loan
Maximum Loan Rs. 15 Mn. (Rs. 7.5 Mn for building and Rs. 7.5 Mn for Machinery)

Repayment
10 years for building and 5 years for machinery
Rate of Interest - 10% per annum *
Collateral – Mortgage over land and building/machinery

Documents Required

1. Project Report
2. Completed Loan Application form
3. If secured by immovable property, copy of the Deed, survey plan, and street line & non vesting certificates are to be submitted upon request.
4. Evaluation & recommendation form

Time taken to disburse the Loan
Depending on the project, collateral, and the size of the loan the time may vary.

Application Form –Attached
Specimen Completed –Attached

2)Special Loan Scheme for Gem and Jewellery Industry
This loan scheme has been introduced with the request of Gem and Jewellery Authority to finance SME sector of the Gem and Jewellery industry.

Eligible Criteria

• Should be a member of a Gem & Jewellery Association
• Should be licensed by National Gem & Jewellery Authority and registered with National Entrepreneur Development Authority (NEDA).

Eligible Loan Category
Purchase of Gem Stones (Working capital Loan)

Loan Scheme

• Short Term Loan (revolving) - Maximum Rs. 1.0 Mn
• Rate of Interest -15% p.a.
• Repayment - Within 6 months (revolving)
• Collateral - Gem stones or any other collateral acceptable to the bank

Documents Required

1. Completed Loan Application form
2. Application Form –Attached
3. Specimen Completed –Attached

3) Special Loan Scheme for SME Sector through COYLE (Chamber of Young Lanka Entrepreneurs)

LDB has entered into a MOU with COYLE to provide a special Loan Scheme for young entrepreneurs in the country.

Eligible Criteria
Should be a member of COYLE (Members who meet the Bank’s criteria including entrepreneurial skills/experience required for a particular industry to seek financial accommodation from the Bank)

Sector
SME industries (Priority would be given for Agri & Agro based industries, Export oriented industries and import substitutes)

Maximum Amount
Rs. 20.0 Mn

Target Group
Registered Members of COYLE.

Purpose of loan
Purchase of Machinery & EquipmentConstruction of factory building

Rate of Interest
12% p.a. for industries located out of Colombo and Gampaha districts
�15% p.a. for industries located in Colombo & Gampaha districts

Repayment
3 years in monthly installments for purchase of Machinery & Equipment ,
5 years in monthly installments for construction/renovation of building

Collateral
Primary / Secondary mortgage over immovable Property
Primary mortgage over movable property with Directors personal guarantee / personal Guarantees acceptable to the bank

Documents Required
Completed Loan Application form

4)Special Loan Scheme for SME Sector through Sri Lanka Chamber of Small Industry

Eligible Criteria

Should be a member of Sri Lanka Chamber of Small Industry.
Recommendation from Sri Lanka Chamber of Small Industry

Sector
SME industries -
Priority would be given to agro and agro-base industries, export oriented industries and import substitutions.

Maximum Amount
Rs. 5 Mn

Purpose of Loan
Purchase of machinery and equipment.
Construction of factory building

Rate of Interest
Industries located within Western Province – 15% p.a.
Industries located out of Western Province – 10% p.a.

Collateral
Primary / Secondary mortgage over immovable property.
Primary mortgage over movable property with Directors Guarantee.

Repayment Period
03 years for machinery and equipment
05 years for building

5) "LAKKAM” Loan Scheme
Lankaputhra Development Bank and Industrial Development Board of Sri Lanka (IDB) launched a joint program with the aim providing financial assistance to the entrepreneurs of Small & Medium Scale Industries (SMI) and Self Employment Sector for the promotion and development of new and existing industries.

Business Sectors Manufacturing industries Services

Loan Limit� Rs. 50,000/- to Rs. 1,000,000/-

Purpose of Loan
To purchase Machinery and Equipments Working Capital

Rate of Interest
12%p.a

Repayment
Maximum 3 years (Rs. 50,000/- - up to Rs. 500,000)
Maximum 5 years (Rs. 500,000/- - Rs. 1,000,000)

Collateral
Any collateral acceptable to the bank

Implementation Areas

North Western Province
Southern Province
�wastern Province
North Central Province
Central Province
Uva Province
Northern Province
Sabaragamuwa�
Province Kalutara District

6)Project loan for building “Sri Lankan Brands”
This loan scheme has been introduced with the request of “Mawbima Lanka Foundation”, for building the brands that have been recognized with their “Sooriya Singha” logo.

Sector
Manufacturing / Exports

Maximum Amount :Rs 10 Mn.

Purpose of Loan:
Brand Promotion locally/ internationally.

Rate of Interest
The rates applicable for Project Lending.
Currently 12% p.a. out of Western Province.
17% within Western Province.

Repayment
Within 7 years

Collateral
Primary/ Concurrent/ Secondary mortgage over immovable property.

Eligibility Criteria
Category A
�Annual Turnover – Over 100 Mn.
�Number of Employees – Over 100

Maximum Loan Amount Rs 10 Mn.

Category B
Annual Turnover –Over 60 Mn
Number of Employees – Over 50
�
Maximum Loan Amount
Rs 5 Mn

Responsibilities of the Mawbima Lanka Foundation

Recommending members to LDB for this purpose and assist the bank in recovery of the loans

Trading Loans – Not Available

Housing Loans -Not Available

Pawning- Not yet introduced

Manufacturing Loans -These are entertained as Project Loans.

Consumer Loans – Not available

Personal and Other Loans- Not Available