GMCL targets micro scale industries

Aims at giving Rs Two billion worth of loans:

Charumini DE SILVA

The Grameen Micro Credit Company Ltd., (GMCL) targets to disburse Rs two billion worth of loans for 100,000 micro scale industries during this year.GMCL has provided loans worth Rs 350 million for 19,000 industrialists during the first half of the year.

Grameen Micro Credit Company Ltd., Chairman/CEO, Victor Ratnayake told Daily News Business that the company will partner with more foreign investors to strengthen the capital flow of the company and enhance the company's lending activities. He said, "These loans are offered for the poor and middle-income entrep- reneurs that have been rejected by the commercial banks. The advantage for our customers is that we provide the loans with 100 percent trust without any collateral.

GMCL has injected Rs 22 billion for 364,000 families during the past ten years. We hope to cater to 500,000 families with micro finance within the next three years," he said.

"The Grameen concept is focusing mainly on the future aspects while a commercial bank always looks for past records of a person when they are to provide a credit facility. The loans are provided only for women as they play a vital role in this segment of the society. We only seek for the confidence of the borrower that they will excel in life by developing their own business," Ratnayake said.

The repayment rate of this segment is 99.9 percent where NPL is at its lowest levels. He said the loans are facilitated through a 9,000 depositor base. Majority of the depositors are well-off local depositors. The facilities given through micro credit has made a constructive impact in the rural economy, Ratnayake said.