1. Funding for Tea Smallholders – Available for new planting, replanting, nursery development, and mechanisation.

2. Flexible Loan Amounts – Borrow up to LKR 5 million (with JFPR grant) or LKR 30 million (without grant).

3. Long Tenure & Grace Period – Up to 10 years repayment with a minimum 24-month grace period for new planting and replanting.

4. Special JFPR Grant – Additional financial support for smallholders with land not exceeding 10 acres, subject to financial literacy training and record-keeping compliance.

5. Low-Interest Rates – Competitive rates based on loan tenure and risk rating.

6. No Early Settlement for Grant Recipients – Borrowers who receive JFPR grant support are not allowed early settlement of loans.

7. Priority for Smallholders – Focused on tea farmers holding less than 50 acres, with special consideration for holdings under 10 acres.

• To qualify for the SMELoC - Tea (ADB) Loan Scheme, applicants must:

  • Be a tea smallholder with a landholding not exceeding 50 acres.

  • Obtain a recommendation letter from either:

    • The Tea Small Holdings Development Authority (TSHDA) for holdings below 10 acres.

    • The Sri Lanka Tea Board (SLTB) for holdings between 10 to 50 acres.

  • Provide a minimum equity contribution of 20%.

  • For the Japan Fund for Poverty Reduction (JFPR) grant, applicants must:

    • Own a landholding not exceeding 10 acres.

    • Use the loan strictly for new planting or replanting.

    • Complete a financial literacy training programme and demonstrate sound record-keeping practices.

This loan scheme supports all agricultural activities that enhance green leaf production and sustainability, including:

• New planting & replanting.

• Infilling & nursery development.

• Irrigation & water management.

• Soil conservation & fertilisation techniques.

• Mechanisation & technology upgrades.

1. Obtain a Recommendation Letter – Visit the TSHDA (for holdings under 10 acres) or SLTB (for 10-50 acres).

2. Visit DFCC Bank – Speak to a Relationship Manager at your nearest DFCC Bank branch.

3. Submit Required Documents – Complete the application with supporting documents (see below).

4. Loan Processing & Approval – DFCC Bank will assess the application and disburse the loan upon approval.

• Recommendation Letter from TSHDA or SLTB.

• Completed Loan Application Form.

• Copy of NIC (National Identity Card) or Business Registration Certificate.

• Financial Statements (Audited/Certified/Management records).

• Bank Statements (Supporting income verification).

• Environmental Protection Licenses (EPLs) (if applicable).

• Any other documents as required by DFCC Bank.

01. Am I eligible to obtain a TEA Pilot Component facility?

• You should be a tea smallholder with a land holding less than 10 Acres with a recommendation letter from TSHDA or a landholding of 10 Acres to 50 Acres with a recommendation letter from the SLTB.

02. What makes you eligible for JFPR grant component under this loan scheme?

• The tea smallholders with a landholding of less than 10 Acres and the eligible capital expenditure should be for new planting or replanting. An additional grant amount is available for tea smallholders who have completed the financial literacy training and demonstrated the practice of record keeping.

• The decision to grant the facility will be made based on the proposal’s eligibility and as TSHDA recommends.

03. Do I have to offer collateral?

• The Bank may request suitable collateral.

04. What are the required documents?

You will be required to provide the documents requested by the Bank, including the following:

• Recommendation letter from the TSHDA or the SLTB

• Duly filled Loan Application

• Copy of NIC of applicants/the Business Registration Certificate and related documents

• Financial Statements (Records/Audited/Certified/Management etc.)

• Supporting documents for accounts, including bank statements

• Valid Environmental Protection Licenses (EPLs) where applicable

• Any other documents required by the Bank for the approval process

05. Who should I contact for more information?

• Refer the branch contact details or contact 0112350000

Related SME Loan Products

• SMELoC - SME (ADB)

• E-Friends II - Revolving Fund

• SMILE III - Revolving Fund