HNB offers working capital loans for SMEs through ADB SMELoC – Emergency Response Program – Adaderana Biz

Sri Lanka’s leading private sector bank, HNB PLC, has been selected as a partner financial institution by the Asian Development Bank (AfDB) to disburse part of the $13.5 million in funds allocated for the intervention program. emergency SME-Line of Credit (SMELoC).

The ADB program aims to support and strengthen Sri Lankan MSMEs affected by the current economic crisis with working capital credit facilities, with a particular focus on the agriculture, tourism and export sectors.

Working towards this goal, HNB seeks to disburse funds to select companies through its extensive network of MSMEs.

“We are delighted to be part of this powerful AfDB initiative. Given the unique strength and breadth of HNB’s network of SME clients across the island, and our longstanding relationship with ADB, we believe HNB is uniquely positioned to help elevate 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 who are struggling with their working capital needs to take advantage of this invaluable opportunity,” said Bandara Rekogama, Head of Refinancing and Special Lending Products at HNB.

SMEs that meet the eligibility criteria of an annual turnover of Rs. 750 million will be offered a maximum facility of Rs. 10 million, with a repayment period of three years. All loans under the program must be used exclusively for working capital needs, including recurring expenses such as salaries, overheads and the purchase of raw materials. Additionally, HNB will offer attractive interest rates of 11.77% on the facility, significantly lower than current market rates.

Notably, the bank has supported over 650 MSME clients with working capital and Capex facilities worth over Rs. 6.5 billion through ADB – SME LoC schemes. Created to support businesses affected by the COVID-19 pandemic, the emergency response program initially disbursed US$10 million to 280 local businesses in the form of emergency working capital loans over the past two years.

In addition, HNB has disbursed loans worth Rs. 600 million for about 132 women entrepreneurs with a grant of Rs. 100 million under the SME LoC – Wefi window.

With 254 customer centers across the country, HNB is one of Sri Lanka’s largest and most technologically innovative banks, having gained local and global recognition for its efforts to advance a new paradigm in banking. digital bank. HNB has a national rating of AA- (lka) by Fitch Ratings (Lanka) Ltd. The bank has also been listed among the Top 1,000 Global Banks list compiled by the prestigious UK-based Banker Magazine for six consecutive years, and was also ranked Sri Lanka’s Best Retail Bank for the 12th year at the prestigious International Excellence in Retail Financial Services Awards 2022 organized by the Asian Banker Magazine.

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