Govt. rolls out special festive loan scheme

• Both public and private sector salaried employees and daily wage earners qualify for the scheme
• BOC, NSB, People’s Bank, Regional Development Bank and Samurdhi Bank tasked with disbursing loans 
• Will allow maximum of Rs.50, 000 at 0.625% monthly interest rate with 11-month repayable period 

The government yesterday announced a special loan scheme for State and private sector employees as well as for daily wage earners to meet their needs during this Christmas and New Year festival season.

Under the loan scheme, salaried employees would be able to obtain up to Rs.50,000 from Bank of Ceylon (BOC), People’s Bank, National Savings Bank (NSB), Regional Development Bank and Samurdhi Bank at a concessionary monthly interest rate of 0.625 percent, according to the President’s Media Division (PMD).

The loan scheme has an 11-month repayable period, and the PMD noted that the loans would be deducted from the salaries of employees starting from January next year, in 10 installments up to October 31.

Salaried employees, who are earning above Rs.50, 000 are eligible to obtain a loan up to Rs.50,000, while those who are earning between Rs.25, 000-Rs. 50,000 are eligible to borrow up to Rs.25,000.

Those who are earning below Rs.25, 000 are eligible to borrow up to Rs.10, 000 from the above-mentioned State banks.

In order to obtain the loans, the employees are requested to inform their respective employers on their intentions and the employers are required to provide the list of employees to the nearest branch of the State bank. 

In addition, self-employed persons such as three-wheeler drivers, school van drivers and private sector bus operators and their employees can obtain loans by visiting their respective State bank branches where they maintain bank accounts. The PMD noted that all daily wage earners are eligible for the scheme, if they maintain a bank account with a State bank. 

Meanwhile, the Department of Pensions and Samurdhi Bank have been made responsible for disbursing loans for pensioners and Samurshi holders.

The PMD noted that the financing facility is being rolled out as an incentive in the festive season for everyone who had to make difficult choices during the year due to the COVID-19 pandemic.