People’s Bank launches loan schemes

“As a bank that is committed to ensuring the economic prosperity of the nation and the quality of life of our citizenry, the People’s Bank has presented an array of financial assistance schemes, enveloping a wide cross section of the economically active population of our country,” said DGM, Domestic Credit, People’s Bank, K.B. Rajapaksha.

“In addition to the support we extend to the micro, small and medium scale investor community, the Bank also lends its assistance to the aspiration youth professional community and the self-employed via a range of specialised loans to propel the country’s agricultural, industrial and services sectors,” he said.

The Bank over the past 53 years has been instrumental in taking ‘customer service’ to a new level by promoting a value-centric business policy driven by mutual trust, respect and courtesy towards its most valued stakeholder – the customer.

Excerpts of the interview.

Q: The People’s Bank has introduced a range of loan schemes in order to cater to the varied needs of the society; can you elaborate?

A: As a Bank that strives to promote financial inclusion, our primary focus is to deliver financial services at affordable costs, to individuals and businesses, including sections of disadvantaged and low-income segments of the society. We achieve this through our island wide branch network of over 735 branches and service centres, through which we offer a range of loans at flexible and concessionary rates of interest.

Q: What are the types of loans available to cater to the ‘housing needs’ of the people?

A: A house is a basic need of any human being. As a responsible bank, we are mindful of our social obligation in this regard and have introduced a range of flexible loan schemes, in keeping with their repayment capacities and the ability to pledge collateral. What’s more, the Bank does not insist on a ‘fixed asset’ to grant these loans, but accept personal guarantors, as long as the loan applicant possesses the capacity to pay.

Financial assistance is granted to our customers through a special housing loan scheme titled ‘Jaya Nivasa’, through which loans are extended to those who wish to purchase a new house; buy land; build extensions; do renovations or refurbish existing property.

Q: Are there any loan schemes available for those who are in need of financial support to pursue their higher education?

A: Yes, we do possess a very special scheme for this segment. ‘People’s Wisdom’ Higher Educational Loan Scheme is specifically designed to cater to this customer - the student population of this country. Through this loan scheme, the Bank assists them with educational loans of up to Rs. 10 million in order to pursue any local or foreign diploma, degree or postgraduate study program, where they can apply individually or jointly either with the parents or brothers and sisters. For certain types of degree programes, we even offer concessionary repayment periods, thus making a meaningful contribution towards strengthening our future generations and building a ‘knowledge society’.

Q: We have observed a recent trend where more and more financial institutions are promoting loans for the purchase of automobiles; what are your views on this market development?

A: Those customers who have purchased vehicles for personal and commercial purposes at exorbitant rates of interest in recent times have been severely inconvenienced due to the high rates of interest and other fees, leading to the loss of their asset as well as their money. The People’s Bank has stepped forward to assist this segment of customers with a unique financial product: People’s Auto Loan – a low interest, affordable loan scheme that has been specifically designed to fulfil the desire of those individuals who wish to purchase their dream vehicle.

Every one of us dreams of a vehicle of our own. Besides, the tremendous development that has taken effect in the country’s road network has expanded the transport sector, thus encouraging more and more individuals to invest in this sector. On the other hand, the lifestyle of today’s individual is on the fast track and are opting for his or her own mode of transport in order to cut down on their travel time. Such developments have increased the demand for auto loans and the Bank has stepped in with the Peoples’ Auto Loan that has been structured in a manner to offer monthly installments that are not only easy on the purse but also flexible. Concessionary rates of interest which are structured on the basis of ‘reducing balance’ minus hidden costs, conditions and charges have made the People’s Auto Loan a truly sought after loan scheme in the market today.

Q: Are there any special financial products to cater to the members of the professional community who are playing a significant part in the country’s development?

A: We are always appreciative of the role played by the country’s professionals who are the very foundation of our society. The contribution they make towards shaping the socio-economic landscape of the country cannot be over emphasised. It is with this important segment in mind that the Bank recently introduced ‘People’s Professional’ – a unique low interest loan scheme that affords them an opportunity to seek a loan facility of up to Rs. 3 million in order to fulfill any of their personal or professional requirements. In addition, the Bank has also arranged to lend up to Rs. 1 million, without additional collateral for these professionals, depending on their professional competence, recognition and social standing.

Q: Apart from these special categories of loans, what are the other financial assistance schemes available at your bank?

A: As a responsible state bank, we are fully aware of our responsibility towards the society and make every endeavour to serve the country’s economically active individuals by playing our part as their trusted financial partner. In addition to the specific sectors we cater to, through the banking products mentioned above, we also serve the teaching profession with our ‘Gurusetha’ loan scheme while the nursing community is served through ‘Suwasevana’. The Deyaviru and Pranama are two special loan schemes that targets those customers attached to the security forces while the Doctors and public and private sector employees who are in permanent employment are being catered to, through ‘Pahasu’, thus meeting the varying financial needs of a diverse clientele through tailor-made loan packages which are unique in their own special way.

Another value added feature in our product portfolio is our Credit Card – People’s Card that is offered at a nominal enrollment fee and an annual fee. The People’s Credit Card affords 51 days of interest free credit while the rate of interest itself has been maintained at the bare minimum. In addition, the People’s Card also presents the cardholders a host of bargains including attractive discounts for purchases made at leading retail stores.

Apart from these regular loan products the Bank also presents seasonal financial assistance schemes to coincide with national level religious and cultural events such as the Sinhala and Hindu New Year. Under this special scheme, financial assistance of up to Rs. 100,000 is granted to customers, enabling them to fulfil their festive needs. The Bank has made arrangements to offer the same facility to our Muslim clientele during the Ramadan season.

Q: As the ‘Bank that feels the Pulse of the People’, how do you think you have been able to support the country’s business and SME sector?

A: As one of the country’s leading state banks, the services rendered by the People’s Bank towards the financial sector is significant. In addition to the host of loan schemes mentioned above, as a pioneering state bank, we are obliged to support the growth of the national economy. Towards this end, we work closely with the country’s agricultural, industrial, fisheries, tourism, trading and commercial sectors by supporting them through the provision of attractive, flexible and affordable financial products and services, thus living up to our stature as their trusted financial partner.

The services rendered by the People’s Bank towards nurturing the Sri Lankan financial landscape have been enormous. As the bank with the largest branch network in Sri Lanka, the People’s Bank has successfully reached out to the Sri Lankan banking public - rural, urban as well as the corporate sector with an array of innovative and attractive banking products and services. As the bank that feels the pulse of our people, our staff members are ever willing to make ‘banking’ a pleasant experience to customers.