Six banks to lend Rs. 3 b to economically awaken the North

* 90% of the total sub project cost, subject to a maximum limit of Rs.200,000/- per borrower.
* The rate of interest to the borrower is 12%
* Repayment period could be extended up to the maximum of 5 years including a maximum grace period of 6 months
* The PFIs are eligible to obtain refinance from the CBSL at 6% per annum
* Prospective borrowers are required to provide at least 10% equity contribution
* The borrower could bring the equity capital in the form of cash, kind, material or managerial capacity

Under a Presidential initiative six banks will begin lending initially Rs. 3 billion to a range of sectors to economically awaken the North.
Titled “The Awakening North” the details of the Special Loan Scheme for Resumption of Economic Activities in the Northern Province was discussed by President Mahinda Rajapakse on Monday with CEOs of banking institutions.
The scheme exclusively designed for the development of the Northern Province by the Central Bank will strengthen the banking sector’s contribution to the development of the Northern Province.
At the meeting chaired by President, MP and Senior Advisor to President Basil Rajapaksa, Ranjith Siyambalapitiya, Deputy Minister of Finance, Mr. Ajith Nivard Cabraal, Governor, CBSL, CEOs of Participating Credit Institutions (PCIs) and Senior Bank Officials were also present.

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