SDB Bank has unveiled a special loan scheme to honour the senior citizens on the UN’s International Day of Older Persons. 
This is part of the bank’s programme to reorient its services to offer a more meaningful service to the public. A new logo was also launched recently to better reflect SDB Bank’s new orientation towards a closer and more efficient partnership with the public.
Nearly 13 percent of Sri Lanka’s population is over 60 years old. The trend shows that by 2020, this population will increase up to 15.7 percent, by 2030 to 22 percent and by 2050 it will reach 28.5 percent. While this is true of many countries around the world, it is the reason for the statement that ‘the world has an ageing population’.
At present, Sri Lanka has over 575,000 retired government employees and this figure is expected to rise closer to the one million mark by 2025. An analysis of statistics shows that 2 percent of gross domestic product (GDP) is allocated for the payment of government pensions. If this segment of the population is not deployed for economically productive activities, it will be an obstacle to the country’s progress. 
SDB Bank, which has well understood this situation, has ventured into economic development activities by formulating the Upahara loan scheme in order to address this matter in an effective manner. Its objective is to provide an opportunity for those who have retired from service due to old age to re-enter the country’s workforce. Under this scheme, a loan of up to Rs.1.5 million would be made available with the repayment period extended till the age of 70 years.
While the loan repayment period will be seven years, the borrowers will also benefit from a loan insurance scheme. This loan insurance scheme will be available with a minimal premium and is unique in that, in the event of the demise of the borrower, the spouse and the dependents will not be liable for settling the loan. While no guarantors are required for this purpose, these loan facilities are available for any activity that is legal and productive for the country.
SDB Bank also provides a 15 percent annual interest rate on a one-year fixed deposit for senior citizens as per the regulations of the Central Bank of Sri Lanka. The bank has also taken steps to offer the senior citizens a higher than normal interest rate on other fixed deposits as well. 
Retirees are ones with an invaluable wealth of experience having worked over a long period in a specific profession. Through this loan scheme they will be able to transform their experience in a productive manner to a business or self-employment. They will greatly benefit by the fact that the loan interest rate for self-employment will be between 5 percent and 8 percent. These are very competitive rates in the context of the current market conditions. There is no doubt that the retirees will also benefit by better mental and physical health due to engaging in such a business activity. 
Through SDB Bank’s Upahara loan scheme, the retired citizens will have the opportunity to run one’s own business without being a burden to the children. They will be able to interact socially while opening the way for the livelihood of some others and contribute to the economic activity of the country as well.
While the retired citizens who deposit their pension to an account at SDB Bank will be able to avail of these loan facilities, they will be able enjoy value-added services such as withdraw money from any ATM with the VISA logo and SMS banking service. Facilities have been provided for senior citizens to obtain information on products and services at any time through the trilingual call centre.