ComBank announces lower interest and ‘Nil Margin’ LCs for vehicle permit holders

Friday, 28 June 2019 00:00 - - {{hitsCtrl.values.hits}}

The Commercial Bank of Ceylon has launched a scheme for Government officers with vehicle permits, offering reduced interest rates on vehicle loans and leases and the opportunity to open Letters of Credit (LCs) without keeping a margin (nil margin).

The bank said permit holders can choose between a loan or lease at the lowest interest rates in the market, starting from 12.75% per annum. The facility can be obtained for themselves or third parties, and the customer would receive a discount on LC commissions.

“This Loan and Lease scheme is a comprehensive and very competitive solution to finance the import of motor vehicles using vehicle permits,” Commercial Bank’s Deputy General Manager – Marketing Hasrath Munasinghe said. “The non-requirement of placing margin at the time of opening an LC is definitely an advantage for permit holders and is an opportunity to maximise the benefits of the permit.”

All Government officers between the ages of 18 and 65 who hold vehicle permits issued under the Trade and Investment Policy Circular numbers 01/2018 and 01/2018(1) by the Ministry of Finance and Mass Media are eligible for this scheme, the bank said.

The only Sri Lankan bank to be ranked among the world’s top 1000 banks for eight years consecutively, Commercial Bank operates a network of 266 branches and 846 ATMs in Sri Lanka. The bank has won multiple international and local awards in 2016 and 2017 and over 40 international and local awards in 2018.

Commercial Bank’s overseas operations encompass Bangladesh, where the bank operates 19 outlets; Myanmar, where it has a Representative Office in Yangon and a Microfinance company in Nay PyiTaw; and the Maldives, where the bank has a fully-fledged Tier I bank with a majority stake.