Financial Times

People's Bank raises interest rates, benefits for elders
People's Bank, focusing on working with a social conscience and social responsibility, said last week it was offering a wide range of interest benefits in many areas of banking activity to its large customer base.

It has increased with immediate effect interest rate on Fixed Deposits for 24 months for senior citizens from 6% per annum to 7.25% per annum (interest payable monthly ) and from 6.5% per annum to 8% per annum (interest payable at maturity).
Initial investments for senior citizens are fixed deposits of Rs. 100,000 with the depositor being over 55 years. They are also entitled to a loan not exceeding 90% of the total Fixed Deposit value at 10% per annum and the repayment period spread out to 60 months. A high rate of 6% per annum, which is 1% more than the normal rate of 5%, will be paid for savings accounts of the senior citizens.

For pensioners, who are invariably senior citizens, a facility has been created to grant a consumption loan not exceeding Rs. 10,000 as against pension receipts without any other security. The repayment will be within one year. The rate of interest will be 14.25% which is the norm for consumption loans.

In order to facilitate the growth of small, micro and medium scale industrial sectors, the bank has granted loan facilities amounting to Rs. 110 million to start up and expand business enterprises. This is done without insisting on collateral security but on the credit worthiness of the borrower, his cash flow and on his willingness to pay back. This scheme had been successfully implemented in Matale, Nuwara Eliya, Kandy, Hambantota, Anuradhapura, Kurunegala and now in Jaffna and Batticaloa also. It has generated employment for 3000 people and it would have a positive effect on the economic development of the country.

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