HNB offers working capital loans for SMEs via ADB SMELoC - Emergency Response Scheme

HNB PLC was selected as a partner financial institution by the Asian Development Bank (ADB) to disburse a component of the US$ 13.5 million in funds allocated to the SME-Line of Credit (SMELoC) Emergency Response Scheme.   
The ADB scheme aims to support and strengthen Sri Lankan MSMEs affected by the ongoing economic crisis with working capital credit facilities, with a special emphasis on agriculture, tourism and export sectors. 
In working towards this goal, HNB looks to disburse funds to select businesses across its extensive MSME network. 
“We are delighted to be a part of this powerful initiative from the ADB. Given the unique strength and scale of HNB’s network of SME clients across the island, and our long-standing relationship with ADB, we believe that HNB is uniquely positioned to help uplift this sector, which even through our current challenges, continues to serve as the backbone of the Sri Lankan economy. 
We urge all eligible SME clients facing challenges in their working capital requirements to make use of this invaluable opportunity,” HNB Head of Refinance and Special Lending Products, Bandara Rekogama said. 
SMEs that meet the eligibility criteria of Rs. 750 million annual turnover will be offered a maximum facility of Rs. 10 million, with a repayment period of three years. All loans under the scheme must be utilised exclusively for working capital requirements, including recurring expenses such as salaries, overheads and raw material purchasing. Moreover, HNB will provide the interest rates of 11.77 percent for the facility, significantly lower than the current market rates.