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The Central Bank has upped the limit on tsunami loans to Rs 10 mn from Rs. 5 mn, for smaller hotels who were not covered by insurance. Priced at six percent, the "Susahana" loan scheme was introduced by the bank to offer emergency credit facility to small and medium sector.
Disbursed through financial institutions, the response has been phenomenon with the bank receiving 1,306 applications amounting to Rs.1,730 mn todate, the Central Bank said Monday.
The bank has also amended the borrower eligibility criteria to allow lending institutions to use their discretion when vetting loan applications from past due borrowers.
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"Borrowers are required to provide evidence by way of restoration certificates acceptable to lending institutions only in respect of immovable property," the bank said.
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