DEVELOPMENT BANKING
Credit Line for Development of Commercialized Agribusiness (VISKAM)

  • Eligible Sectors For Finance
    • Diversification of agro-based enterprises.
    • Value added economic activities.
    • Enhancement of production and productivity.
    • Promotion (amelioration) of quality of products.
    • Innovative activities in the agricultural sector.
    • Development of market opportunities for farmers.
  • Eligible purposes for financing
    • Agro and milk based industries of innovative nature, which generate employment and add value.
    • Development of Dairy Resources Centers (DRCs), Medium Scale Commercial “Dairy Farms” and “Breeding Farms”.
      • Purchase of cows
      • Constructions of cattle sheds
      • Fodder cultivation
      • Farm development
      • Construction of bio gas units
      • Purchase of machinery and equipment
      • Transport and storage to preserve milk and milk based products
      • Working capital for Dairy Resources Centers
      • Any other innovative methods recommended by Veterinary Surgeon for improvement of production and quality of products.
    • Adoption of new technologies and establishment of farms in line with accepted standards.
    • Promotion of cost effective innovative methods in agriculture (eg. Organic fertilizer production, Production of tools and equipment etc.)
    • Purchase of machinery and equipment for agriculture, fisheries and livestock sector activities.
    • Construction of standardized warehouse and factory buildings.
    • Transport and storage to preserve agricultural commodities and minimization of waste.
    • Establishment of demonstration farms recommended by Veterinary Surgeons and working capital required for innovative projects.
  • Project area

    • To be implemented in all the Districts in the Island.

  • Date of commencement of the loan scheme

    • 01st November 2010

  • Eligibility of applicants
    • The borrower shall be a citizen of Sri Lanka.
    • Be an individual or a group of individuals or a registered company engaged in agriculture or agricultural based industry / enterprise.
    • Be within the age group of 18-55 years in case of individuals, (applicants over 55 years of age can apply jointly with a close relation.)
    • Should be able to provide an equity contribution of 15 percent of the estimated total cost of the proposed project in cash or in kind.
    • Should not be a borrower or a guarantor of any previously obtained and defaulted loans from any financial institution.
    • Should have a business plan acceptable to the bank.
    • Should be a person with required knowledge, expertise and managerial skills to maintain the project profitably.
    • Should be able to provide collateral required by the bank.
    • Should be a project with conformity to national environmental regulations and standards.
    • Should be able to convince the bank that the proposed project entails a sound cash flow and a satisfactory repayment capacity.
  • Maximum loan amounts
    • Agro and milk based industries - Rs. 25.0 million
    • Dairy projects - Rs. 400,000/= to Rs. 2.5 million
    • Demonstration farms - Rs. 10.0 million
    • Innovative projects - Rs. 5.0 million
    • Breeding Farms / Dairy Resource Centers - Rs. 5.0 million
  • Rate of interest

    • 8% p.a.

  • Period of repayment

    • A repayment period from 36 months up to 72 months is allowed including a maximum grace period of 06 months. (Interest on loan capital should be paid also during the grace period.)

  • MAXIMUM REPAYMENT PERIOD

          Three (3) years only

  • SECURITIES
    • Two guarantors acceptable to the bank.
    • Mortgage over movable or immovable properties.
    • Securities acceptable to the bank.