We have introduced loan schemes especially to the flood and drought affected areas with the assistance of the Central Bank and the government at very concessionary rates. One such scheme offers a maximum loan amount of Rs 150,000 with a 6.5% interest rate
ary rates. One such scheme offers a maximum loan amount of Rs 150, 000 with a 6.5% interest rate per annum. The other loan scheme introduced by the government
There are many loan schemes introduced by the last budget proposal. Especially relevant to the solar power facilities. The Rivi Bala Savi loan scheme has a rate of 6% per annum and the maximum loan amount is Rs 350, 000. The loan is available island wide and we will grant the amount on behalf of the customer to solar power companies which are registered with the ‘ Sri Lanka Sunithya Balashakthi Adhikariya’ under the Ministry of power and Renewable energy.
There is also a loan for agriculture purposesGovi Navoda, for renovation, equipment, and technical assistance. The loan has a rate of 3.27% and the maximum amount is Rs 500,000. The Jaya Isura loan scheme for the SME sector offers a rate of 6.54% per annum and the maximum amount is Rs 50 Mn for individual customers. If the business is export oriented, the amount can be expanded to Rs 100 Mn. The minimum turnover should be Rs 25 Mn per annum to be eligible to the scheme.
We have another loan scheme, Ran Asswanna that targets the small scale farmers and farm organisations. The maximum loan amount is Rs 500, 000. The payback period for the loans is 5 years.
Can you talk about your existing loan schemes?
We have the ADB loan scheme for the SME with a fixed rate of 12.1% per annum. According to the repayment capacity of our customers and the project specifications, the loan can be granted for a period of 10 years. We can consider granting up to Rs 50 Mn. The loan is available for the SME sector, apart from the construction purposes.
The government has also introduced the SwaShakthi loan scheme which is targeted to create one million employment and we are the leader in that line of credit.
What are the documents that customers have to submit to qualify for the loans?
For the large scale and SME loans, we need the project proposal, business registration and the environment protection licence. Those are mandatory documents and also need the other documentation that is normally required.
What is the reason behind the range of loans?
The Rs 150, 000 loan scheme is suited towards the micro finance sector, whereas the Rs 500, 000 caters to the SME. There is a vast difference between the two sectors. The government also has many refinancing facilities like NADEP (National Agriculture Development Project) and the government-owned fund allocated to the flood and drought affected areas.
How many customers have come to the bank to get the loans?
Normally, we are granting 250, 000 individual loans per annum through our network, not including the gold loans.
What has led to the RDB’s success?
Our motto is “once a customer, always a customer” and we encourage our micro finance customers to eventually grow to become SME level customers and so on. We are pleased to announce that about 75% of our customers are women and our employees are constantly in touch with our customers.
Can you talk about the bank’s reach?
We are in the front line with the doorstep banking facilities and also have a branch network of 268 branches. We expanded our reach in the regional areas of the country with the recently re-located Thirappane branch with the patronage of the Minister of Public Enterprise Development Hon. Kabir Hashim. Our core objective is concerned with the Development of regional Sri Lanka. We hope to extend our help to all micro industries and SMEs in Sri Lanka in keeping with the goals and missions of the government.