People’s Bank joins CBSL-backed Guarantee Scheme for Pawning Advances
View(s):People’s Bank has joined the guarantee scheme initiated by the Central Bank of Sri Lanka (CBSL) for pawning advances, the state bank said on Monday.
The agreement in this regard was signed between the two institutions at the Regional Development Department of the Central Bank of Sri Lanka.
The guarantee scheme covering pawning advances would enable the bank to continue its financial assistance programmes towards the farming community and micro, small and medium scale entrepreneurs, who will receive financial assistance at concessionary rates of interest to carry on their businesses and other economic activities. The scheme will facilitate the granting of an additional 15 per cent loan quantum over and above the usual advances made on gold pawning by the bank at present, the announcement said.
The scheme allows the bank to grant up to Rs. 500,000 at a 15 per cent annual interest rate for pawning advances. This scheme will particularly support those who are involved in agriculture and small-scale commercial ventures.