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The Central Bank said it is initiating a UNDP funded US$ 1 mn micro financing scheme to revive micro enterprises affected by last December’s tsunami. The late effort hopes to give up to Rs.
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50,000 per micro enterprise, with women led enterprises getting priority.
A number of micro level enterprises reportedly have not restarted their businesses after the tsunami due to a lack of collateral to borrow and anticipation of relocation.
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The Scheme is being operated through 5 participating banks including People’s Bank, Bank of Ceylon and Seylan Bank.
The loan carries 6% annual interest, payable in eight years after a one year grace period.
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Under an earlier loan scheme to assist tsunami affected business, the bank said it had up to mid October disbursed 8278 loans totalling Rs. 3.8 billion.
Loan of up to Rs. 60 million was on offer, including a maximum Rs. 100,000 for micro enterprises.