Seylan Bank accelerates MSME lending with new govt-backed schemes

Seylan Bank, in collaboration with the government of Sri Lanka (GoSL), has reinforced its commitment to micro, small and medium enterprises (MSMEs) by expediting loan disbursements through a combination of direct lending and innovative guarantee schemes. 
Seylan Bank ranks among a careful selection of financial institutions chosen to support the initiative’s MSME growth in the country.
This loan comes with a maximum loan amount of Rs.25 million, offering businesses the flexibility to meet their diverse needs. With a generous maximum tenure of 10 years and an attractive interest rate of 7 percent, this scheme is tailored to address the unique challenges faced by the MSMEs.
Through the National Credit Guarantee (NCGIL) programme, up to 67 percent of qualifying loans are secured by the guarantee scheme, while the borrowers pay a guarantee fee of one percent annually, based on their risk profile.
Recognising the importance of female-led enterprises, the Liya Shakthi Guarantee Scheme has been launched under the National Credit Guarantee Institution Ltd, to provide enhanced coverage of up to 80 percent of the loan amount, compared to the standard 67 percent. This ensures that women-owned and women-led MSMEs gain stronger financial backing, helping them overcome traditional barriers to credit access and scale their businesses with greater confidence.
Funded by the GoSL, this loan scheme is designed to serve as a catalyst for the MSME sector, unlocking its potential and propelling it towards unprecedented levels of growth. Priority sectors include manufacturing, tourism, agriculture, apparel and export-oriented industries. The loan scheme is a flexible financing option designed to back the aspirations of entrepreneurs who will drive innovation, job creation and community upliftment.