LOMC, SL Post tie-up for micro loans

Ramani Kanagararachchi

The demand for microloans from LOLC Micro Credit Limited (LOMC) the microfinancing arm of the LOLC Group has increased by more than 60 per cent during the 2009/2010 compared to 2008/09. LOLC Micro Credit Limited CEO Ravi Tissera said the company portfolio stood at Rs 3.8 billion at the end of the last financial year and stands at Rs 5 billion in August this year.

He said that currently 35,000 borrowers benefit from this scheme and the company hopes to increase this to 50,000 active borrowers by the end of the financial year.

Operating under the brand name LOLC Isuru Diriya, LOMC offers a range of microloan products at a far reaching network of branches. LOMC is currently on a strategic partnership with SL Post to deliver microloans through Post Offices.

Apart from the expertise gained and a good understanding of the segment’s needs LOMC therefore has the advantage of having extensive reach into the rural areas and the necessary infrastructure. Tissera said the LOMC has also got involved in the uplift of facilities at the postal network, assisting SL Post through renovating and developing buildings and infrastructure at requested locations. There are 47 post office outlets including recently opened outlets in Akkaraipattu, Pottuvil, Kalmunai and Chenkalady.