Mechanism to obtain micro finance loans to be simplified: State Minister

Initiatives are to be taken to simplify the mechanism to provide micro finance loans and to facilitate money lending, State Minister of Samurdhi, Household Economy, Micro Finance, Shehan Semasinghe said.

He also said that even though the previous government had informed those who had obtained micro finance loans not to repay them, it has been reported that the lenders had been exerting pressure on the borrowers to pay back their loans.

Low-income people had faced extreme difficulties due to the exorbitant high-interest rates at which loans had been granted, he added.

The State minister said that steps had been taken to collect information to overcome the situation, and in addition the Treasury had taken steps to regulate the procedure.

“Samurdhi recipients too will be entitled to obtain micro finance loans,” he added.