People’s Bank slashes interest rates to uplift entrepreneurs

In keeping with the government’s guidelines to uplift local entrepreneurs, and with the aim of uplifting businesses that are struggling as a result of the COVID-19 pandemic, People’s Bank has embraced the responsibility of a State bank and taken steps to immediately reduce the interest rates of industries that contribute directly to the local economy.

These industries include agriculture, animal husbandry, related industries, other crops and fisheries fields as well as manufacturing, tourist hotels, exports, development and microfinance and cooperative divisions.

Accordingly, in terms of agriculture, animal husbandry, related industries, other crops and fisheries fields, the 13 percent interest rate applicable for loans of up to Rs.1 million (up to 3 years) has reduced to 9.50 percent and if more than 3 years to 9.75 percent, while the current 14 percent interest rate for loans over Rs.1 million has reduced to 13.50 percent.

In the manufacturing industry, the 13.50 percent interest applicable to loans of up to Rs. 1 million (up to 3 years) has dropped to 9.50 percent while the interest rate for loans above 3 years has dropped to 9.75 percent.

In the hotels and tourism industry, the 14.5 percent interest rate applicable for loans of up to Rs.1 million has reduced to 9.50 percent (up to 3 years) and 9.75 percent (more than 3 years) whereas the 16.75 percent interest rate applicable for loans of more than Rs.1 million has reduced to 14.50 percent (up to 3 years) and 16.25 percent (more than 3 years).

In terms of export remittances, the interest rates of 12.5 percent for up to Rs.1 million for Trust credit receipts, short term loans, pledge loans and packing credit loans has been reduced to 9.50 percent while the interest rate for over Rs.1 million has been reduced to 12 percent.

In the development and micro finance field, under New People’s Fast Loans the interest rate for micro enterprise loans of a maximum of up to Rs.250, 000 has dropped from 13.5 percent to 9.50 percent while interest rates for small enterprise loans of up to Rs. 1 million has dropped from 13.50 percent to 12.75 percent and interest rates for medium enterprise loans of up to Rs. 20 million has been reduced from 13.50 percent to 13 percent.

In the Cooperative Movement industries, the interest rates of 11.50 percent for animal husbandry and agri-oriented projects of up to Rs. 1 million has been reduced to 9.50 percent and for projects over Rs.1 million it has been reduced to 11 percent.