Business

Enterprise Sri Lanka has provided 23,000 loans so far

Enterprise Sri Lanka concessionary loan scheme has so far provided 22,957 loans worth Rs. 449,176 million via private and public banks for individuals and organisations, according to a statement by Ministry of Finance and Mass Media.

Enterprise Sri Lanka, a programme launched to introduce 100,000 entrepreneurs, was officially inaugurated on 22 June under the patronage of President Maithripala Sirisena and Minister of Finance and Mass Media Mangala Samaraweera.

Begun with the intention of starting a new generation of entrepreneurs, 16 concessionary loan schemes were introduced under this programme. The specialty of these schemes is that the government pays a fraction or the complete interest amount to the banks on behalf of the debtor.

The loan schemes namely are Jaya Isura, Sonduru Piyasa, Maadhya Aruna, Haritha Naya and Middle income housing loan. From small scale self-employees to large scale entrepreneurs, concessionary loans are provided from Rs. 50,000 to Rs. 750 million through the scheme.

The loans for solar power generation, small and medium entrepreneurs and reservoir cleaning are three loans that are financed through foreign loans. Asian Development Bank provided Rs. 8,000 million for the solar power panels for houses and factories.

During this short period, loans that are introduced to encourage agricultural exports, namely ‘Ran Aswenna’ and ‘Govi Navoda’ are reported to be the most acquired loans by applicants. 6,022 people have reportedly taken loans from ‘Ran Aswenna’ scheme where the debtor receives Rs. 5,000,000 to Rs. 7,500,000 under three batches. The government pays 6.75% of the 13.5% weighted interest ratio to the banks on behalf of the beneficiary.

‘Govi Navoda’ loan scheme which is aimed at mechanisation of agricultural processes, strengthening farmers and farmer unions’ report to have benefitted 1,749 people so far. A loan amount of Rs. 500,000 is allocated in this scheme, with the government paying 75% of the loan interest. Only 3.38% is the required interest ratio the debtors are asked to pay.

The housing loan named ‘Sonduru Piyasa’ given to 11,711 applicants’ covers maximum amount roofing up to Rs. 200,000 per applicant. The debtors will pay 50% of the loan interest since the government is taking care of the remainder.

All of these loan amounts are distributed through private and public banks to the applicants. Bank of Ceylon is reported to be the bank that most people got loans from, with up to 11,711 applicants. Regional Development Bank has provided loans to 5,612 debtors while National Savings Bank and People’s Bank have provided loans to 2,983 and 1,402 applicants respectively.

Apart from that a considerable amount of loans passed through private banks. Finance and Mass Media Minister stated that Rs. 5,300 million has been allocated from the 2018 budget to pay loan interests of Enterprise Sri Lanka and the government is determined to successfully introduce 100,000 entrepreneurs to the nation within one year. Additionally, the minister also mentioned that officers from Banks and Government officials will meet once in three months and discuss the progress of the loan service.