The Government has included finance and leasing companies in the scheme to provide immediate relief to the small and medium enterprises (SMEs), which are the economy’s backbone, by way of freezing capital repayment for one year to kick-start growth via key sectors.
“Finance and leasing companies will be included in the scheme on the same basis,”Central Bank announced.
Whilst the directives will clearly spell out the modalities, during the meetings of the banking sector, it was agreed to extend freeze on capital repayment for one year for loans below Rs. 300 million taken by SMEs.
The qualifying turnover threshold is Rs. 750 million per annum.
Special credit support scheme has been introduced to eligible Small and Medium Enterprise borrowers of banking sector.
This scheme was launched with a view to accelerating economic growth in the country, Central Bank annaounced.
Subsequently, considering the importance of extending the benefits of the borrowers of NonBank Financial Institutions Sector (NBFI), it was decided to introduce similar scheme for NBFI.
Accordingly, the Central Bank has introduced a special credit support scheme for the individuals and entities who have engaged in income generating activities, already classified as Non-performing as at 31.12.2019 based on terms and conditions specified in the Circular No.01 of 2020 – Credit Support to Accelerate Economic Growth.
Therefore, all eligible borrowers shall make written request to respective Licensed Finance Companies (LFCs)/Specialized Leasing companies (SLCs) on or before 31.03.2020 to enjoy the benefits of the scheme.
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