Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe has raised concerns that some bank branches are misleading customers about the government’s concessionary loan scheme, often directing them toward alternative products that generate higher profits.
In a statement, he said the concessionary loan programme remains active and accessible, with a clear and transparent application process in place.
By March, banks had processed 630 applications worth Rs. 7.2 billion, while the Loan Guarantee Institution had approved 267 collateral-free loans. Overall progress under the scheme has reached Rs. 17.4 billion, with a total allocation of Rs. 95 billion set aside for businesses.
Some banks, including Commercial Bank, Hatton National Bank (HNB), and National Development Bank (NDB), have already completed their quotas. The Ministry of Finance is expected to release additional funds in the next quarter, he said.
Abeysinghe urged entrepreneurs to stay informed, noting that more than 1,300 individuals have successfully obtained collateral-free loans despite misleading claims.
He outlined the correct procedure for applying, which includes obtaining the application form from the Divisional Secretariat, submitting it to a bank, and having the bank enter the application into the digital system after review. The bank then recommends the applicant to the Ministry of Finance, which processes approval within two weeks.
The Deputy Minister also expressed appreciation to bank officials and ministry staff for their efforts in supporting and advancing the programme.
