HDFC Bank introduces loans for MSMEs

HDFC Bank of Sri Lanka signed a Memorandum of Understanding with the Central Bank of Sri Lanka recently to offer a new loan scheme, Saubhagya, which will focus on Micro, Small, and Medium scale entrepreneurs (MSME) who are engaged in production and services relating to agriculture, industrial and the service sector.

Under this scheme, loans are available at a concessionary rate of interest to MSMEs and the maximum loan facility available is Rs. 25 million.

Loans could be obtained from the 36 branches of the HDFC Bank islandwide. The loan scheme of the bank will cover the categories of agriculture and plantation, horticulture, animal husbandry and fisheries, production of food and beverages, garment and textile industry, footwear and leather products, gem and jewellery, wood and wood related products, light engineering works, cottage industry and handicrafts, ornamental fish farming, healthcare products and centres, beauty culture, hotels and restaurants, vehicle service stations and maintenance, studios and entertainment and other innovative products directly related to MSME.

The Bank hopes to fulfill the financial needs of the prospective clients and will encourage improving productivity through the Saubaghya loan scheme.

With the expansion of the product portfolio of the bank, HDFC went beyond housing rudiments and now the bank's business strategy involves empowering lives by making micro credit, small business loans, leasing and other financial services available across the country with the support of their mobile banking service which will also help to reach out to the unbanked segment in the country.