Lankaputhra Bank steers Krushi Navodaya Scheme

APPOINTED: Lankaputhra Development Bank has been appointed the implementing agency of the Krushi Navodaya (Agricultural Awakening) loan scheme for and on behalf of the Ministry of Finance and Planning.

Fourteen Participatory Financial Institutions (PFIs) have been identified to grant these loans. The identified PFIs are Lankaputhra Development Bank itself, People's Bank, Bank of Ceylon, Commercial Bank, Hatton National Bank, Seylan Bank, Sampath Bank, Sanasa Development Bank, and the Regional Development Banks of Sabaragamuwa, Rajarata, Uva, Wayamba, Ruhuna and Kandurata.

This latest Government loan scheme which came into effect from March 1, 2007 originates from one of the key proposals of the 2007 Budget. The scheme envisages enhancing income generating avenues of the farming community.

The small farmer and the self employed, engaged in varied activities of the agriculture sector are the specific segments targeted through the scheme.

Beneficiaries under the Krushi Navodaya scheme are granted loans up to a maximum of Rs. 100,000 at an extremely affordable interest rate of 8%. The repayment period for a single loan could go up to 36 months.