NDB lends over Rs.16.5bn under Saubhagya loan scheme to COVID-hit biz

• Accounts for 11% of total allocated funds for entire banking system
• Rs.11bn already disbursed among over 1,500 beneficiaries throughout country 

NDB Bank has disbursed over Rs.16.5 billion worth of funds under the COVID-19 Saubhagya loan scheme, at the rate of 4 percent per annum, in a continuing demonstration of the bank’s commitment in supporting the economic recovery. 

The bank has thus provided over 11 percent of the allocated Rs.150 billion by the Central Bank.

NDB Vice President SME, Middle Markets and Business Banking Indika Ranaweera said, “We have utilised these funds to support the businesses affected by the pandemic, lending more than our market share. We have continued the support we provided to the SMEs for the past four decades and this stance was only further cemented during their times of need.”

NDB has fully exhausted the funding quota allocated to the bank under Phases I, II and III of the Saubhagya loan scheme. 

The Central Bank of Sri Lanka implemented the Saubhagya loan scheme in April 2020, to support businesses in their post-pandemic recovery, which will be granted at 4 percent per annum to COVID-19-impacted companies, up to a maximum limit of Rs.50 million per company, under three phases, to meet the immediate working capital requirements. This scheme came to an end on September 30, 2020.

Accordingly, NDB has currently received the approval from the Central Bank for a total value of over Rs.16.5 billion. Out of the approved loans, over Rs.11 billion loans have so far been disbursed among over 1,500 beneficiaries, covering all the districts, including North and East and the arrangements are being finalised to release the rest of the approved loans in the next couple weeks.  

NDB has always been at the forefront of providing assistance to the small and medium-scale businesses. The SME segment, which forms the backbone of the Sri Lankan economy, is the segment which will be impacted the most in an economic downturn. Hence, ever since the COVID-19 pandemic created an adverse situation for such businesses, NDB immediately stepped up to, by making funds available at 
concessionary rates.

Further, NDB Bank’s ‘NDB Jayagamu Sri Lanka’ initiative, which was introduced in order to lend a helping hand to the country’s exporters and innovators via financial and non-financial methods, is filling a vacuum that exists in the market in empowering upcoming entrepreneurs, exporters and innovators, which is essential to help set the country on a new growth trajectory.