RDB Bank puts forth an attractive loan line-up

The Regional Development Bank (RDB) is a fully State-owned national-level development bank with 268 branches around the island and is “deeply committed to serving the people through the district and provincial branches”.

Empowering entrepreneurs in the micro, small and medium sectors, the bank offers a number of loan schemes with attractive and competitive interest rates such as Saubhagya, SEPI, Kapruka Ayojana, Kapruka Jaya Isura, SMELoC and Swashakthi. 

Micro Finance & Special Project Assistant General Manager K. Ariyathilaka at RDB spoke about the performance of the bank’s loan schemes in the past year, and the bank’s plans in terms of new loan schemes. Ariyathilaka revealed that as of 31 December 2017, the bank had disbursed around Rs. 70 billion to the micro and SME sector, which is a very significant number at RDB. The majority of the customers are micro-level entrepreneurs to whom the bank facilitates loans up to Rs. 500,000 and above so that the entrepreneurs can then transcend to small and medium scales. As such, the majority were given to micro-level customers.

This year will also see the bank disbursing funds to the customers through several new schemes. The bank follows two loan schemes; refinance loan schemes and interest subsidiary loan schemes, introduced by the Government and Central Bank.

The loan facilities will be granted across various fields at concessionary interest rates ranging from 3.38% to 10.12% per annum.

Ran Aswenna has three categories. Govi Navoda, where up to Rs. 500,000 is given to farmers and farmer organisations to purchase machinery and equipment for agriculture, commercial-scale Agriculture and to set up factories to use new technology for post-harvesting and finished products. Rivi Bala Savi, where a loan up to Rs. 350,000 is given to buy solar panels for individual houses. The Jaya Isura scheme is for industries, fisheries, agriculture and plantations, tourism, garments, IT and dairy development, etc.

The Enterprise Sri Lanka offers loans of up to Rs. 1 million which are offered to small-scale entrepreneurs, known as the “green loan”, and can be obtained by entrepreneurs who manufacture packaging, bags and other items using biodegradable materials. The second category of a Rs. 5 million loan is given to entrepreneurs who want to construct small-scale tourist hotels or homestays. The third is given to install GPS-tracking cable meters in three-wheelers or for compost fertiliser projects. The loan is given to enterprises with less than 5 employees and a turnover of less than Rs. 10 million per annum at an interest rate of 6% per annum.

The Jaya Isura is the next phase of the Green Loan and can be obtained in two categories. The first focuses on SME projects with an annual turnover of Rs. 10 million to Rs. 250 million, with employees from 5 to 50. This option allows the customer to receive up to Rs. 50 million for projects supplying goods and services to the local market, while up to Rs. 100 million is given to projects supplying goods and services to foreign markets. The second category focuses on SME projects with an annual turnover of Rs. 250 million to Rs. 750 million with employees from 51 to 300. Up to Rs. 200 million is given to projects of this calibre that supply goods and services to the local markets, while up to Rs. 400 million is given to projects that supply goods and services to foreign markets.

RDB also continues to offer the loan schemes already available at the bank including Kapruka Ayojana Credit Scheme, Kapruka Jaya Isura, SEPI, Saubhagya Loan Scheme, Swashakthi Loan Scheme, SMILE III, SMELoC, and PAMP RF.

RDB is the leading state-owned development bank in Sri Lanka with focus in assisting micro, small and medium entrepreneurs to develop their business activities. Currently, the RDB operates its business activities in all the provinces, including the North and East. It also serves a 24-hour banking facility to the nation through the ATM’s which are connected to the Lanka Pay main switch.