Loans under the Vidatha programme for SMEs

Manjari Peiris

BORROWING: Entrepreneurs obtaining technology through the Vidatha Programme will now have the privilege of borrowing loans up to Rs. 100,000 from People’s Bank at the rate of 8% interest.

The process of transferring technology through Vidatha Centres established islandwide is now being successfully continued. Though this process of activity a large number of small scale entrepreneurs have emerged. Lack of financial resources has been identified as a main problem that these entrepreneurs are faced with.

The initiative taken by Minister of Science and Technology Prof. Tissa Vitarana with the mediation of the People’s Bank has resulted in setting up a programme to solve this problem. Accordingly now the small scale entrepreneurs will have the privilege of borrowing loans from People’s Bank up to Rs. 100,000 at the rate of 8% interest.

A programme was held at Kandyan Reach Hotel in Kurunegala to enlighten provincial bank managers, technology officers and district coordinators stationed at Vidatha Resource Centres.

Minister Vitharana, said all this time the practice of banks was lending loans only to rich people. They had to be firm on the security from the borrower against the loans that they lent as a means of recovering loans in circumstances of non-payment.

As such those who had expertise without assets could not borrow loans. But the methodology developed by our Minister along with the People’s Bank, has helped in lending loans without any security.

As security when borrowing loans under this scheme, they have to only provide two signatories as witnesses. The Minister also stated that this programme is being implemented to uplift the rural economy by considering it as a national necessity.