MSME FAQs

Starting up a new business, expanding business operations, purchasing equipment and machinery, and other working capital requirements.

Approximately LKR 300,000-4,000,000. However, applications may be considered on a case-by-case basis for lesser loan amounts as well.

No. However, a borrower is required to provide evidence of the existence of his/her business and proven track record of operation.

No. However, a borrower is required to maintain two savings accounts with DFCC Bank: a Recovery account and a Compulsory Savings account.

In order to instill a savings habit among its MSME customers, it is mandatory for all borrowers to save a predetermined amount in their respective Compulsory Savings account on a monthly basis. Borrowers will not be allowed to withdraw the accumulated saving from this account until the loan is settled in full.

There is a minimum amount of cash that must be held by the Bank, which is directly proportionate to the loan amount. The mandatory cash hold must be sufficient to cover at least one loan installment. Borrowers are not allowed to withdraw this mandatory cash hold until the loan is settled in full.

The Bank uses a value chain financing approach to reach out to the rural farming community in partnership with various stakeholders such as Government institutions and processors/off-takers.

Tea cultivation, passion fruit cultivation, floriculture and dairy farming.

Yes, DFCC Bank’s Fixed Income Earner’s Loan (FIEL) Scheme was especially designed to support emerging entrepreneurs from all walks of life.

It ranges from 16.5% to 18.5% (subject to change), depending on the loan tenure and collateral presented.

Generally 25-50 years; however, case-by-case considerations are made based on the viability of the business/project.

Personal guarantees may be offered for loans of less than LKR 500,000, while higher loan quantum requires a tangible security acceptable to the Bank.

No. However, a guarantor should have the repayment capacity and a social standing similar to that of the borrower.

The maximum tenure is 5 years and the minimum tenure varies depending on the quantum and purpose of the loan. Furthermore, the loan’s installment would depend on the loan size, rate of interest and tenure. Customers can contact their nearest branch for more details.

Yes, but in this instance, borrowers are expected to pay a fee, which varies depending on the age of the loan. Other than saving the future interest of the loan, there is no specific benefit.

Please refer our website (www.dfcc.lk) for the latest tariffs.

Borrower and business related details

• Loan application
  
• Business plan
  
• A copy of the borrower’s National Identity Card
  
• A copy of the Business Registration Certificate (if available)
  
• Ownership confirmation of the property/business
  
• Residence confirmation documents
  
• Income confirmation documents
  
• Relevant approval to carry out the business
• Any other relevant documents (service letters/training certificates/education certificates, etc.)

• Last deed
  
• Local authority-approved surveyor plan
  
• Latest extracts within a period of three months

• Copies of the guarantors’ National Identity Cards
  
• Confirmation of residence of the guarantors
  
• Income confirmation documents of the guarantors
  

Other than the basic eligible criteria, a joint borrower should have established a formal relationship with the primary borrower.

All borrowers are covered by a DTA policy (provided free of charge), which ensures that all dependents of the borrower are relieved of any debt commitments in the event of a death or permanent disability.
In addition, if they fulfill the basic eligible criteria, borrowers are also free to enjoy all other product/services offered by DFCC Bank.

Provided that the borrower submits all the required documents and information, the loan will be processed within 2 weeks.

Yes. For all practical reasons, the normal repayment method is equated installments. However, equal installments (reducing balance) are also possible upon special request by the borrower.

In a flat rate method, the interest rate is calculated on the principal amount of the loan. Whereas in the reducing balance method, the interest rate is calculated only on the outstanding loan amount on a monthly basis. Therefore, in practical terms, the reducing balance method is more beneficial than the flat rate method.

Considering a borrower’s commitment to his/her loan repayments and loyalty to the Bank, borrowers will be offered hassle-free, extended credit facilities.

The Bank will provide an information sheet with all the necessary details such as the loan installment amount, due date and recovery account number.

Yes. Such a request should be made prior to the loan disbursement.

Please refer our website (www.dfcc.lk) for available refinancing schemes.