NDB conducts workshop on Southern Province development credit scheme for Sanasa Development Bank off
Monday, 9 September 2013 00:00
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NDB recently conducted an awareness program for the regional managers, branch managers and credit officers in the Southern region of Sanasa Development Bank (SDB).
The workshop was conducted in a bid to introduce the operating instructions of the ongoing ‘Southern Province Rural Economic Development Revolving Credit Scheme’ (SPREAP Rev. Phase II) to the officials of SDB; as a part of the joint efforts of NDB and SDB in implementing the credit scheme in the Southern Province.
SPREAP was introduced in 2002, supporting the State’s efforts to accelerate economic growth and reduce poverty and unemployment in the Southern Province. The project is funded by the Asian Development Bank (ADB) and backed by the Ministry of Regional Development while the Ministry of Economic Development acts as an execution agency.
For over a decade, SPREAP has contributed towards SME development in the region, addressing common issues faced by the industry such as inaccessibility to market information, slow diffusion of technology, low levels of skills and limited access to finance.
The SPREAP revolving credit scheme which has now come to its third lending cycle has achieved much success since its launch in 2002, funding numerous projects and creating more than 18,000 employment opportunities. In its third and current phase, NDB would allocate a forecasted sum of Rs. 750 million for funding under the program. Welcoming the participants to the workshop, Chief Executive officer of SDB M.T. Galgamuwa said: “This would be the best opportunity for SDB to deliver more long term credit facilities for its customers across 28 branches in the region, at a very attractive interest rate and lenient conditions. The bank is equipped with infrastructure facilities required for the effective operations of the credit facilitation and the enthusiastic support of its younger staff across the southern region branch network will support to grant credit facilities to micro and SME entrepreneurs of the Southern Province.”
The workshop was conducted by Kapila Deshapriya, Head of Refinance of NDB. Making the introductory remarks he stated that the operating instructions which represent government’s objectives of the credit component of SPREAP are transparent and self-directive and SDB could use this opportunity to strengthen its assistance to the SME and micro sector in the Southern Province.
He further pledged NDBs support for speedy processing of facilities while assuring that NDB would readily share knowledge and expertise for capacity development on project lending assistance with SDB. NDB Manger – Refinance Upali Karunannada then briefed the operating instructions of the credit line and explained how the credit applications referred to NDB are processed.
Applications for credit facilities under SPREAP Rev Phase II could be referred directly through Participating Financial Institutions given below or through authorised Entrepreneur Development Service (EDS) providers appointed by the Southern Province Development Authority which is the lead EDS Provider of the credit scheme.
SPREAP Rev Phase II loan facilities are considered for number of industries including agriculture sector services, farm machinery, irrigation, commercial crops, agro – industries, food processing, beverage, fisheries, forestry, animal husbandry, construction materials, transport, metal products, selected services, etc.
The loans are granted at an attractive interest rate of 10.5%. Repayment is considered up to five years with a grace period negotiable depending on the nature of the project. The participating financial institutions for the SPREAP Rev. Phase II credit scheme are NDB Bank, Sanasa Development Bank, Hatton National Bank, Commercial Bank, People’s Bank, DFCC Bank, Regional Development Bank, Bank of Ceylon and Sampath Bank.
