Come and borrow- It’s easy, beneficial, says BoC

Sanjeevi Jayasuriya

The number of beneficiaries of the low interest loans offered by the Bank of Ceylon needs to be increased to stimulate economic activities of the country. More awareness is necessary among the public regarding the loan scheme to encourage the borrowers to obtain loans at reduced interest rates, Bank of Ceylon Chairman Dr. Gamini Wickramasinghe told the Daily News yesterday.

Bank of Ceylon has disbursed Rs. 8 billion in funds under the low interest rate regime.

The State banks are offering low interest rate loan facilities to its customers from end October in a move to facilitate sectoral development including the rural economy and boost the overall economy.

The loans are offered to the public servants including the service personnel and the general public. The maximum loan limit is Rs three million. The loan for the public servants are provided at different interest rates- first Rs 500,000 at 4 percent, upto Rs 1,000,000 at 8 percent and upto Rs 3 million 11 percent. The general public could obtain loans at a flat rate of 12 percent. The repayment could be completed within 25 years or reaching the age of 60, he said. The low interest housing loans are aimed at providing an impetus to construction industry and movement of credit. This would have a cyclical effect as the labour force would have more activities and people’s purchasing power would increase, he said.

The increased economic activities also will have a direct bearing on sectors such as transportation, agriculture and marketing. The bank of Ceylon has opened its gates for the public to provide the low interest rate loan facility and encourages people to submit their applications, he said.

Steps would be taken to attract customers by way of organizing “loan pola” to promote this facility. The low interest loans will be provided to sectors such as housing, animal husbandry, exports and agriculture. BoC has taken steps to expedite the loan application process. Loans are given to purchase houses and land for construction. The loan could be obtained within a weeks time when all the necessary documents are provided by the applicants including title report, valuation and BOQ, he said.

The Bank encourages the low income group to obtain this facility and there is a special counter “Ranawiru Sewa” to accommodate loan application by service personnel. We appeal to the public to enjoy this benefit and thereby to enable more economic activities, more liquidity and create productive employment. We want to create an appetite for credit in the country, he said.