1. Loan Facilities

    2.  

    3. When a purchaser does not have the financial ability to meet the total sum required to buy goods or services, he has to look for an alternate source of funds. On the other hand, there may be someone looking for a profitable venture in which to invest his surplus funds.


    4. The meeting of this supply and demand has created the lending business. Financial institutions have become the intermediary for collecting surplus funds of investors and meeting funds required by entrepreneurs.

 

 

Individuals
The applicant should be a citizen of Sri Lanka over 18 years of age. Facility will not be considered for a minor or a person who does not have legal capacity to borrow.

  •  

Sole Proprietor

  • A business establishment registered and operated by an individual, who is the owner.

Partnerships
A duly registered business establishment formed by two or more individuals (partners). All partners are jointly and severally liable for any transaction performed in the name of the partnership and all partners should sign all security documents relating to a credit facility sought by the partnership.

Limited Liability Companies

 

  1. 1. A Corporate body registered at the office of Registrar of Companies.

  2. 2. The Memorandum and Articles of Association of the company govern the terms and conditions under which the company
  3. should  carry on its objectives.

 

Clubs and Societies

 

 

Types of Facilities

 

Credit facilities can be obtained according to the purpose and repayment terms.

 

Repayment Period

  • Short Term- Facilities that should be fully settled within a period of 1 year
  • Medium Term - Facilities that should be fully settled within a period of 3 years
  • Long Term - Facilities that should be fully settled within a period over 3 years

 

Purpose
To meet permanent working capital requirements of the business

        • Overdrafts
        • Discounted facilities
        • Letter of Credit facilities (Revolving)
        • Hypothecation loans (Revolving)
        • Trust Receipt (Revolving)
        • Pledge Loans (Revolving)

         

To meet capital expenditure such as procurement of fixed assets          

        • Term loans
        • Syndicated loans
        • Letter of Credit facilities (once and for all)
        • Hypothecation loans (once and for all)
        • Trust Receipt (once and for all)
        • Pledge Loans (once and for all)
        • Lease financing
        • Hire Purchase Loans
        • Personal loans
        • Housing loans

         

For import/export business

    • Letter of Credit facilities
    • Hypothecation loans
    • Trust Receipt
    • Pledge Loans

 

For Credit Purchase and Contract Performance

  • Letters of Guarantee facilities