Ministry of Finance Announces Grace Period Extension For COVID-19 Recovery Loans Issued Through SDFC

On Tuesday, Ministry of Finance made an announcement informing that they have extended the grace period for the COVID-19 recovery loans issued through SME Development Finance Corporation (SDFC) for small and medium businesses in order to keep it up and running amidst the economic impacts of the pandemic.

The loans were initially introduced with a grace period of 6 months whereas the announcement on states that the extension of the grace period by an additional six months – bringing up the total grace period to 12 months. This extension is applicable for those loan recipients whose grace period has already expired as well. Those whose grace periods are yet to expire have can also apply for the six-month extension upon the expiry of their existing grace period whereas new loan recipients will be awarded the loan with a 12-month grace period from the start.

Within 30 days from when the announcement – the approval terms for the grace period extension will be notified for eligible loan recipients through SDFC’s customer portal. Those who wish to take up the extension must notify the acceptance of the extension and gather the necessary documents within 30 days of this notification.

Please kindly find the full announcement at this link for further information.