CB to launch housing loan scheme targeting low and middle-income groups

• Move comes in the wake of Saubhagya scheme reaching completion 
• Says Rs.100bn worth credit approved out of Rs.150bn Saubhagya scheme

The Central Bank (CB) plans to launch a housing loan scheme targeting low and middle-income groups in the country as it explores fresh loan schemes to support the economy with the COVID-19 relief loan scheme inching closer towards its completion.  

“The Central Bank would be looking at priority areas in the economy as indicated in the overall government policy directions to initiate appropriate credit and other programmes for promotions,” CB Governor Prof. W D Lakshman announced yesterday.

He said the CB would shortly announce the proposed housing loan scheme while noting that such schemes are crucial to promote anticipated Inclusive economic growth in the country. 

Meanwhile, CB Senior Deputy Governor Dr. Nandalal Weerasinghe revealed that the CB has approved Rs.100 billion in credit under its Rs.150 billion ‘Saubhagya COVID-19 Renaissance Facility’, up to now. 

The facility provides working capital loans at 4 percent per annum with a repayment period of 24-months, including a grace period of 6-months to businesses, self-employed and individuals adversely affected by the COVID-19 outbreak, through the banking sector.