1. What is NCGIL?
National Credit Guarantee Institution Limited (NCGIL) is a public company incorporated as a public private partnership between the Government of Sri Lanka (GOSL) and 13 financial institutions to support MSMEs to have better access to finance by providing a partial credit guarantee to the shareholder financial institutions to encourage uncollateralized lending based on cash flows of MSMEs.
2. Who is eligible to obtain a loan under the NCGIL guarantee scheme?
Any business in Sri Lanka falling under the definition of MSME is eligible to apply for a loan from any of the shareholding financial institutions (Banks/FIs) if the business is financially viable and has the capacity to pay the loan back to the SFI without any difficulty.
3. What is the maximum & minimum loan size accommodated under this scheme?
Minimum loan size is LKR 500,000 and the maximum loan size is LKR 25Mn
4. Will the NCGIL guarantee the full amount of the loan?
No, NCGIL guarantees only upto 67% (2/3) of the loan disbursed by a Shareholding Financial Institution (SFI).
5. Do we have to pay commission in addition to the bank interest?
Yes, NCGIL will charge a risk premium of 1%-2% based on the risk on annual basis. Premium is calculated not on the loan amount but on the guaranteed amount. Permiun to be paid by the MSME.
6. What type of banking facilities are covered under this scheme?
Only term loans payable in installments granted for capital expenditure (Maximum repayment period 10 Years) and permanent working capital (Maximum repayment period 3 Years) are eligible for the guarantee cover. Any of these two categories of term loans should have repayment period of more than one year
7. Which banks and financial institutions are partnered with NCGIL?
There are 13 financial institutions partnering with NCGIL, Please refer "Partners/Shareholders" for details.
8. Does NCGIL provide loans directly?
No, Funding to the MSMEs are provided by the shareholding financial institutions, NCGIL will only provide guarantee cover to the financial institutions as a comfort to mitigate the risk.
7. Do we have access to NCGIL?
Yes you can, please talk to any of the officers under "Contact Us".