NCGI guarantees Rs. 525 m-worth loans
The National Credit Guarantee Institution (NCGI), a stake agency designed to expand lending to micro, small and medium-sized enterprises (MSMEs) by providing credit guarantees to banks and financial institutions, launched recently, has already disbursed over 115 guarantees amounting to Rs. 525 million.
Functioning under the purview of the Ministry of Finance, Planning and Economic Development, the institution guaranteed 625 loans in total, Jude Fernando, CEO of National Credit Guarantee Institution (NCGI), told The Sunday Times Business. MSME businesses in Agri processing, food processing, IT, trading, and small manufacturing, etc, were given guarantees to obtain loans from banks, he added.
One of the most significant challenges faced by MSMEs is access to affordable credit. Despite various government schemes, many small businesses struggle to secure MSME loans due to stringent eligibility criteria, lack of collateral and high interest rates. The NCGI evaluates projects based on cash flow viability rather than property collateral.
“The NCGI is working with 10 banks, three finance companies, and we will continue to onboard more financial institutions going forward,” Mr Fernando said. The institution is a public-private partnership, an Asian Development Bank-funded project, and has 13 banks as partners.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!