Susahana loan scheme disburses Rs. 3807 m loans

A total of 8278 loans to the value of Rs. 3807 million had been disbursed by the participating financial institutions under the Susahana loan scheme up to October 15, the Central Bank said yesterday.

The CB said that a large number of applications by tsunami affected small and medium scale entrepreneurs are also being processed at branch level of each Participating Financial Institution.

Among the loans disbursed fisheries sector has received 2808 loans to the value of Rs.958.72 million while Rs. 980 million has been disbursed to tourism related activities through 1652 loans. The trading sector has received Rs.659 million through 1652 loans, the CB said. Among the other sectors the loans were disbursed were Agriculture, Industry, transport and self employment.

In addition to Susahana a loan scheme to assist micro finance sector has also being funded by United Nations Development Programme (UNDP). Various programme are also being implemented by the CBSL for the benefit of Tsunami affected enterprises/entrepreneurs: The UNDP has granted US$ 1 million to the CBSL to be disbursed to micro entrepreneurs through PFIs and Micro Finance Institutions (MFIs) in the Tsunami affected areas under more or less similar terms and conditions to the Susahana Loan Scheme.

However, the target beneficiaries of the UNDP scheme are only micro entrepreneurs whose credit needs do not exceed Rs.50,000 per borrower.

Further, female headed families will be given priority in selection of such borrowers. The Scheme is being operated through 5 participating banks, i.e. People's Bank, Bank of Ceylon, Sanasa Development Bank, Seylan Bank and Ruhuna Development Bank.

The Central Bank of Sri Lanka (CBSL) with the concurrence of the government introduced Susahana to assist the micro small and medium scale enterprises affected by tsunami to resume business operations.