Pan Asia Bank joins Central Bank’s credit guarantee scheme for pawning

Tuesday, 9 September 2014 00:01 - - {{hitsCtrl.values.hits}}

Pan Asia Banking Corporation PLC recently entered into an agreement with the Central Bank of Sri Lanka to participate in the new credit guarantee scheme for pawning advances.

Pawning remains the most popular credit access method for individuals in Sri Lanka due to its simple and speedy operation. Under this scheme, borrowers are eligible to obtain pawning advances up to Rs. 500,000 at an interest rate of 15% per annum, which includes all fees and charges. Due to the sharp volatility experienced by global gold prices in the recent past, the pawning service providers had to adopt a conservative approach towards granting advances limiting the pawning customers’ ability to access credit. The new credit guarantee scheme from CBSL addresses this by providing a price guarantee to service providers enabling them to provide an enhanced level of credit to their customers.