Loan Schemes

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Loan Schemes

Individual Guarantee Scheme
Financial Support Sri Lankan MSMEs by providing partial credit guarantees

National Credit Guarantee Institution Limited (NCGIL) support Sri Lankan MSMEs by providing partial credit guarantees to the participating shareholder financial institutions (Banks and FIs) to encourage uncollateralized lending based on viability and cash flows of Sri Lankan businesses.

NCGIL Guarantee Structure

Criteria	Details
Eligible Business Category	MSMEs engaged in any business sector in agriculture / Industry / Service of the economy.
Type of guarantee provided by NCGIL	Guarantees to the SFIs to partly secure the term loans granted to individual MSMEs.
Extent of the Guarantee	67% of the loan amount approved by the SFI (Standard Guarantee Scheme) 80% of the loan amount approved by the SFI (Liya Shakthi Guarantee Scheme) – Women Owned Business
Guarantee fee	1% to 2% per annum, calculated on the guaranteed amount, based on the risk of relevant business. Fees to be paid by MSME. Recovered annually on the outstanding (Guaranteed amount)
Types of loans eligible for the guarantee cover	Only term loans (LKR) to fund CAPEX and Permanent Working Capital
Loan Amount	Minimum Loan Amount LKR.500,000/- Maximum Loan Amount LKR. 25 Million
Tenor of the loans	Capex Loan: Maximum Period: 10 Years, Minimum Period: 1 Year Permanent WC Loan: Maximum Period: 3 Years, Minimum Period: 1 Year
Priority Sectors	Woman-Owned / Managed Business, Environmentally friendly business, Tourism industry, Agriculture industry, Information Technology (IT), Export industry

Eligible MSMEs could approach any of the thirteen shareholder financial institutions (SFI – Bank/FI) under the program, for their funding needs and the SFI will evaluate such proposals to ascertain the overall viability as per their lending guidelines. SFI then approve the loan if the proposal meets all the requirements and thereafter will apply for the guarantee cover from NCGIL. NCGIL will verify the eligibility of the loan approved by the SFI and agree to issue the guarantee cover, if in order, subject to the terms and conditions of the scheme. The NCGIL will charge an annual premium calculated on the guaranteed amount of the loan. The premium charged will range from 1% to 2% PA based on the risk involved in each facility and to be borne by the MSME. With the approlval for the credit guarentee cover by the NGGIL, SFI will arrange to disburse the loan to the MSME.