DEVELOPMENT BANKING
LOAN SCHEME FOR UPRAISE OF MICRO AND SMALL ENTREPRENEURS ENGAGED IN MICRO AND SMALL SCALE TRADING ACTIVITIES
  • OBJECTIVES OF THE LOAN SCHEME
    • To grant loans efficiently over a simple methodology for entrepreneurs engaged in micro and small scale trading activities at urban, semi – urban, and rural levels, and to provide opportunity to repay loans on a daily, weekly or monthly basis in keeping with their income patterns.
    • To prevent obtaining financial facilities from informal financial sources at prevailing high rates of interest for immediate credit requirements of micro and small entrepreneurs.
    • To grant loans at concessionary rates of interest.
  • PROJECT AREA
    • All the Districts in the Island.
  • ELIGIBILITY OF APPLICANTS
    • Loan applicant should be a citizen of Sri Lanka.
    • Should be a person within the age group of 18 – 55 years. (Applicants over 55 years of age can apply for a loan jointly with a close relative.)
    • Applicant should not be a borrower or a guarantor of a defaulted loan obtained previously from any financial institution.
    • Should be a permanent resident in the area in which the project is located. Otherwise the place of permanent residence should be established by documents issued by the Grama Niladari of the relevant area.
    • Should have a repayment capacity to pay installments of the loan.
  • ELIGIBILITY OF APPLICANTS
    • Should be a citizen of Sri Lanka.
    • Should be a person within the age group of 18-55 years. Applicants over 55 years of age can apply jointly with a person within the prescribed age group.
    • Applicant should not be a borrower or a guarantor of a defaulted loan obtained previously from any financial institution.
    • While there should be another permanent source of income to pay the loan, borrower should be able to repay the loan installment with the said income.
    • Borrower should possess the ownership of the land to be cultivated.
    • Should have obtained the recommendation of the Grama Niladari / Agriculture Research and Production Assistant / Samurdhi Development Officer.
    • While a person applying for a loan of Rs: 50,000/= should own a Home Garden with an extent of 10 perches, person applying for a loan over Rs: 50,000/= should own a Home Garden with an extent of 20 perches.
  • PROJECT AREA

           Relates to all the Districts in the Island.

  • MAXIMUM LOAN AMOUNT

          Rs: 100,000/=

  • MINIMUM LOAN AMOUNT

          Rs: 50,000/=

  • MAXIMUM REPAYMENT PERIOD

          Three (3) years only

  • SECURITIES

          Two personal guarantors. (One of the guarantors may be the spouse, or an adult child or a cousin.)