Special low-interest repayment scheme for Samurdhi beneficiaries

Uditha Kumarasinghe

COLOMBO: The Samurdhi and Poverty Alleviation Ministry has implemented a special low-interest repayment scheme providing a six month grace period to Samurdhi beneficiaries who have faced hardships to repay their loans obtained from countrywide Samurdhi banks.

The Ministry has introduced this low-interest scheme for the Samurdhi beneficiaries who have obtained loans for various self employment ventures and cultivation activities.

The Financial section of Sri Lanka Samurdhi Authority (SLSA) has implemented this scheme with effect from August 1 this month, Samurdhi and Poverty Alleviation Minister Pavithra Wanniarachchi told the Daily News yesterday.

According to this scheme, the borrowers who obtained loans between 1996 and 2000 will be exempted from the penalty interest completely if they are prepared to settle their loans, the Minister said.

The SLSA has decided to write off the penalty interest charged for the loans obtained from year 2000 to 2001 by 75 per cent while writing off the penalty interest for loans obtained from 2001 to 2002 by 50 per cent. In addition the penalty interest charged on loans obtained from 2002 to 2003 will be slashed by 35 per cent and penalty interest for loans given from 2003 to 2004 by 25 per cent.

If the Samurdhi beneficiaries repay the arrears instalments of their loans at once or within a six month period, steps have been taken to completely reduce the 25 per cent interest charged.

This special opportunity will be provided to Samurdhi beneficiaries only on one occasion, she said.

According to the Minister the increasing trend of bad debts could cause a bad impact on the Samurdhi banks. Therefore the intention of this special programme is to provide the opportunity to Samurdhi beneficiaries to repay their loans without any burden.

She said research studies have revealed that the percentage of the loan recoveries in Samurdhi banks is nearly 95 per cent. Therefore Samurdhi beneficiaries have shown a keen interest to repay their loans.

Sometimes, Samurdhi beneficiaries are unable to repay their loans due to various socio-economic hardships resulting in the sudden collapse of their income generating avenues.