Union Bank expands support to SMEs
The Small Medium Enterprise (SME) sector is a key driver for change of inclusive economic growth, regional development, employment generation and poverty reduction and is the backbone of the economy in Sri Lanka.
Supporting this National agenda for the development of the sector, for over 25 years, Union Bank has provided its services to uplift SMEs through a comprehensive range of financial solutions and advisory services that are flexible and customised to meet the growing needs of diverse industries from Manufacturing, Power and Energy, Transportation to Professional Services. In addition, Union Bank has also been committed to uplifting other sectors such as agriculture, agro-processing, manufacturing, fisheries, tourism, animal husbandry and export businesses through its SME Line of credit.
Union Bank’s SME line of credit is a loan that supports the long-term sustainability of businesses. It offers funding options such as Long-term Investment Loans and Joint Investment Loans with Working Capital. This facility supports various investment ventures of SMEs and offers loans up to LKR 50 million for Capital Investments such as the purchase of new machinery, equipment and installation, purchase of furniture and fittings, refurbishments/renovations of buildings and Working capital financing. SMEs under the category of an annual turnover of LKR 750 Mn with employees less than 300 are eligible to apply for funding through this facility.
Recognising the importance of female entrepreneurship, Union Bank’s line of credit offers a 10% grant to female entrepreneurs. Developing this growing sector to build sustainable businesses, under this grant scheme, Union Bank has already distributed substantial funding among deserving women-led SMEs.
The Bank conducts various advisory initiatives with the participation of top professionals and leaders from diverse industries. Those who have completed the associated training are eligible to enjoy an additional grant of 10% of the principal loan amount. Women entrepreneurs in Uva, Sabaragamuwa, and the North and Eastern provinces are eligible to enjoy an additional 5% of the principal loan amount, and if associated training has been completed, they are eligible to obtain up to 25% of the principal loan amount as a grant.
Commenting further, Union Bank’s Senior Vice President SME & Transaction Banking, Asanka Ranhotty, said ‘’ Union Bank’s Line of Credit continues to support many long-standing entrepreneurs and has been building sustainable businesses across Sri Lanka. The Bank’s focus on women entrepreneurship also provides an opportunity for women to follow their entrepreneurial dreams whilst getting grants and additional benefits to enhance their knowledge and skill for business growth”.
