Loan Scheme to benefit lower grades’ public servants

Shirley Wijesinghe

COLOMBO: Minister of State Revenue and Finance Ranjith Siyambalapitiya yesterday totally rejected the statements of some organisations that the Public Servants’ Property Loan Scheme (PSPL) has been suspended by the Government.

Minister Siyambalapitiya said that the Government had to amend the PSPLS due to the difficulties facing high payments on subsidised interest and budget management. The new scheme will be continued through the state banks more effectively after introducing some amendments, he said. The total number of public servants benefited by the new scheme were 25,543 and Rs. 23,191 million has been distributed among them.

The Government implemented the new scheme to provide a concession for the lower grade employees.

According to the new scheme the interest for Rs.500,000 is 4 per cent.

For Rs.1,000,000 the interest is 6 percent and 9.33 per cent for loans above Rs.1,000,000.

The Government also instructed State banks to give priority to the loan seekers up to Rs.500,000 and finalise them before September 1, 2007. Loans below Rs.1,000,000 should be finalised before December 1, 2007. Loans exceeding Rs. one million should be finalised afterwards.