CB relaxes farmer loan documentation requirements

Minimum of two documents allowed:

Charumini DE SILVA

The Central Bank has relaxed documentary requirements for farmers in the Northern Province on obtain bank loans for their cultivations.

Some farmers in the Northern Province are unable to produce their actual deeds to apply for loans. The banks were unable to grant loans due to this reason, Central Bank Governor Ajith Nivard Cabraal said.

Therefore, the Central Bank intervened in this matter and offered a solution. The Central Bank considering this situation has relaxed the documentary requirements by providing a list of documents.

If the applicant could provide at least two documents out of the list, the applicant is allowed to obtain the loan.

The Governor said the key elements that will be looked at are to ascertain the applicant's permanent residence and the land ownership.

As an example a letter from the Grama Niladhari confirming he is from the area and another letter from the Divisional Secretary of paid taxes with the application will be granted loans.

"With enhanced economic activities taking place throughout the country the demand and lands prices in Jaffna has increased tremendously.

During a recent visit to Jaffna we heard that a perch of land in Jaffna town is now Rs 2.7 million," he said.

This shows the demand growing even apart from the Western Province due to the healthy economic situation in the country. We expect that the development happening covering all parts of the country will bring sustainable economic growth while ensuring prosperity to the entire nation," the Governor said.