Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe says concerns have been raised that some bank branches continue to mislead customers about the government’s concessionary loan scheme, often steering them toward alternative products that boost branch profits.
In a statement, he informed that the concessionary loan programme remains active and accessible, with a clear process in place.
By March, banks had processed 630 applications worth Rs. 7.2 billion, while the Loan Guarantee Institution approved 267 collateral-free loans. Overall progress under the scheme has reached Rs. 17.4 billion, with a total allocation of Rs. 95 billion earmarked for businesses.
Some banks, including Commercial Bank, HNB, and NDB, have already completed their quotas, but the Ministry of Finance will release additional funds in the next quarter, he said.
Abeysinghe urged entrepreneurs to remain informed, noting that more than 1,300 individuals have successfully secured collateral-free loans despite misleading claims.
He provided the following details outlining the proper method for applying for the loans:
- Obtain the relevant application form from the Divisional Secretariat office
- Submit the application form to the bank
- After review, the bank must enter the application into the digital system to begin the process
- The bank, after its initial study, recommends the applicant to the Ministry of Finance
- The Ministry of Finance approves within two weeks
The Deputy Minister extended his gratitude to bank officers and ministry officials for their active role in driving the programme forward. (Newswire)
