Divi Neguma credit scheme to commence on Monday

Saturday, 30 August 2014 05:54 - - {{hitsCtrl.values.hits}}

To bring relief to 1.5 m families In accordance with the Divi Neguma Development Department’s goal of eliminating poverty by empowering the people through livelihood improvement projects, the Divi Neguma credit scheme will commence on 1 September under the theme ‘On-the-Spot-Cash’ (Esuru Senin Athata Mudal). This credit scheme will ensure credits up to a maximum of Rs. 50,000 without guarantors on a special low interest rate of 4%. It will cover five million families including 1.5 million Divi Neguma Development beneficiaries living in 35,440 villages belonging to 14,022 Grama Seva Divisions in the island. They will receive credit scheme to meet their consumer requirements the same day the credit scheme applications are submitted. Loans for other needs will be given within three days after applications are submitted.

Low interest loans ranging from Rs. 5,000 to Rs. 50,000 will be given for starting self-employment projects under this scheme, which is activated through 1073 Divi Neguma Micro Finance Banks of the Divi Neguma Development Department in accordance with the ‘Mahinda Chinthana’ Vision on the advice of President Mahinda Rajapaksa. On 1 September ceremonies in this connection will be held at 1073 Micro Finance Banks in 327 Secretarial Divisions throughout the country parallel to the main event of the Divi Neguma Sahana Aruna program. This loan scheme has been launched for the purpose of helping the beneficiaries to pay for the items and labour necessary for their livelihood development projects. Also these loans will help to meet emergency consumer requirements and the need to repay loans. This is being done in addition to the micro finance credit facilities provided through Divi Neguma community banks and bank societies. The objective of this scheme is to invest income from the village within the village and prevent people falling into debt by taking loans from financial institutions at high interest rates, according to the Economic Development Ministry. The minimum loan provided under Divi Neguma Sahana Aruna is Rs. 5,000 while the maximum is Rs. 50,000. The grace period for repayment of consumer loans is one year. Thereafter repayments should be made in 24 equal installments. There is no age limit for obtaining loans. Meanwhile Phase 6 of the Divi Neguma National Program will begin on 20 October at the auspicious time of 10:07 a.m. It will economically empower 2.5 million household units. Phase 1 of this program commenced on 12 March 2011 and today it has benefited five million families in the areas of agriculture, livestock, fisheries and cottage industries. It was for this purpose that the Divi Neguma Department was established combining five institutions including the Sri Lanka Samurdhi Authority, Sri Lanka Upcountry Development Authority and the Sri Lanka Southern Development Authority. The Act was passed in Parliament with a two-third majority (a majority of 117 votes) and it was gazetted on 3 January 2014. Accordingly 26,000 employees of the five institutions, including 24,082 employees of the Samurdhi Authority were absorbed into the Government Service. They are now entitled all privileges including pensions given to Government servants.