A new initiative to provide loans without collateral for small and medium-sized businesses has been launched, announced Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe.
Speaking during the Budget Committee debate in Parliament, Deputy Minister Abeysinghe stated that the program aims to assist approximately 20,000 struggling small and medium-sized businesses by collaborating with banks through the Ministry of Industry and Entrepreneurship Development.
To address the lack of collateral, the government has established the Credit Guarantee Organization, which offers a loan protection program. Under this system, if a business owner lacks collateral but wishes to obtain a loan, they can partner with their bank and receive 60% coverage from the Credit Guarantee Organization, enabling them to access loans without collateral.
Additionally, discussions with several banks have resulted in an organized program that allows emerging entrepreneurs to receive an initial capital of 1 million rupees without collateral. This initiative is also focused on creating a capital fund for the IT industry and other start-up sectors to promote growth and development.
Deputy Minister Abeysinghe emphasized the government’s commitment to providing relief and financial support to local small and medium-sized businesses struggling under existing regulations.
