Govi Shakthi loans to help farmers

A special loan program "Kethata Aruna" was launched with subsidy interest to the farmers under the Mahinda Chinthanaya. The loan project will be opened by the Bank of Ceylon, as the "Govi Shakthi" Loan Project".

The project to assist farmers was launched at the Anuradhapura Youth Centre by S. M. Chandrasena, Minister of Farming and Promotion of farmers. H. M. Dhanapala, Bank of Ceylon, Assistant General Manager in-charge of North Central Province said under this loan project, Rs. 38 million has been granted for 273 farmers.

While granting the loan at low interest, feasibility on surety and repayment are the special futures. The farmers are immensely benefited by this project because this loan could be obtained on two farmers' personal sureties.

This loan could be obtained at the low annual interest of 12% to 14%. Normally, this loan is paid at the high annual interest from 16% to 20%. Repayment of this loan for the farmers, also at affordable terms, such as monthly, quarterly and half-yearly. The loan could be settled from the income of their harvest too.

This loan could be settled in four instalments. The main problem for farmers is to store the paddy in the traditional manner, by putting them in a paddy container "Vii Bissa" . Firstly a Rs. 8,000 loan could be obtained to make the paddy container. Secondly, for husking the paddy and milling rice for flour, Rs. 50,000 is granted. The annual interest of 12% is charged on these loans.

The third clause in the loan project is granting loan, of Rs. 200,000 at an annual interest of 13% to buy a hand-tractor. Facilities have been granted to settle this loan in five years. The fourth clause in the loan project is granting a loan of Rs. 1 million to buy a four-wheeled tractor.

This loan is granted, at the annual interest of 14% for the farmer, who has five acres of land. M. H. Dhanapala, Bank of Ceylon, Assistant General Manager in-charge of North Central Province said that this "Govi Shakthi" loan could be obtained at any branch of the Bank of Ceylon.