Having approved concessionary loans amounting to Rs.178 billion identifying the national importance of revamping the businesses affected by COVID-19 pandemic, the Central Bank has extended Grace Period of 4% Working Capital Loan Scheme from 6 Months to 9 Months.
It has come up with its latest statistics claiming that they have approved 61,907 loans amounting to Rs. 178 billion through Saubagya COVID-19 Renaissance facility as of 15th October 2020.
These applications were for a total of Rs. 177,954 million and registered under the three Phases of the Saubagya COVID-19 Renaissance Facility.
So far, the Licensed Banks have released loans amounting to Rs. 133,192 million among 45,582 affected businesses island-wide.
Central Bank has implemented Saubagya COVID-19 Renaissance Loan Scheme Facility in 3 phases to provide working capital loans at the interest rate of 4% per annum, with a repayment period of 24-months, including a grace period of 6-months.
However, it is observed that most of the borrowers have experienced difficulties in revamping their businesses as expected, due to the second wave of COVID-19 pandemic.
The CBSL has decided to extend the grace period applicable for the loans registered under this loan facility by additional three (03) months, upon the written request made by the borrowers.
This decision has been taken after considered the importance of facilitating and encouraging borrowers to repay the loans without any failure,
Accordingly, beneficiaries of these working capital schemes who wish to receive a grace period of 9 months are required to send a written request to the relevant bank.
These applications were for a total of Rs. 177,954 million and registered under the three Phases of the Saubagya COVID-19 Renaissance Facility.
So far, the Licensed Banks have released loans amounting to Rs. 133,192 million among 45,582 affected businesses island-wide.
This was Rs. 45 billion less than the Central Bank’s allocation, financial analyst said adding that the monetary authority has taken action to process and approve a large number of loan applications of Covid-19 affected individuals and businessmen during the past two and half months.
Only 25,365 applications out of 36,489 have been sanctioned for these concessionary loans by August 21 this year, CB data showed.
(LIN)