NCGIL support Sri Lankan MSMEs by providing partial credit guarantees to the participating shareholder financial institutions (Banks and FIs) to encourage uncollateralized lending based on viability and cash flows of Sri Lankan businesses.
| Criteria | Details |
|---|---|
| Eligible Business Category | MSMEs engaged in any business sector in agriculture / Industry / Service of the economy. |
| Type of guarantee provided by NCGIL | Guarantees to the SFIs to partly secure the term loans granted to individual MSMEs. |
| Extent of the Guarantee | 67% of the loan amount approved by the SFI |
| Guarantee fee | 1% to 2% per annum, calculated on the guaranteed amount, based on the risk of relevant business. Fees to be paid by MSME. Recovered annually on the outstanding (Guaranteed amount) |
| Types of loans eligible for the guarantee cover | Only term loans (LKR) to fund CAPEX and Permanent Working Capital |
| Tenor of the loans |
Capex Loan: Maximum Period: 10 Years, Minimum Period: 1 Year Permanent WC Loan: Maximum Period: 3 Years, Minimum Period: 1 Year |
| Priority Sectors | Woman-Owned / Managed Business, Environmentally friendly business, Tourism industry, Agriculture industry, Information Technology (IT), Export industry |
*SFI – Shareholder Financial Institutions (Bank/FI)