SME Development Finance Corporation (SDFC) has decided to extend the moratorium offered for loans issued to small and medium enterprises (SMEs) for another 4 months.
SDFC stated the initial moratorium offered for SME loans was due to expire in September. However, SDFC said the moratorium has been extended to a further 4 months starting from September 1, in order to facilitate the recovery of businesses which have been severely affected by the COVID-19 pandemic. The corporation said the interest rate of loans will be reduced to 4% during the moratorium period.
SDFC requested SMEs to apply for the extended moratorium starting from September 7. The corporation said information on the extended moratorium will be made available on the website of SDFC starting from September 7.
SDFC has been providing loans for SMEs under different categories such as business development loans, property purchase loans, agricultural loans and startup loans. SDFC issues loans at an interest rate of 6% per annum, with a repayment period of up to 3 years and a grace period of up to 6 months.