HDFC Bank to empower trained youth

Housing Development Finance Corporation Bank (HDFC) recently signed a Memorandum of Understanding (MoU) with the Central Bank of Sri Lanka to empower the self-employed sector.

This Self Employment Promotion Initiative (SEPI) loan scheme will focus on providing financial assistance to trained youth who pass out from vocational training institutions, under the purview of Ministry of Skill Development and Vocational Training (MSDVT), to launch self-employment projects.

Though the trainees gain knowledge and skills in different technology areas and are fully competent, it is difficult for them to find a job since most of the industries are located in urban areas and lack of financial facilities is a major barrier for emerging them as entrepreneurs. Hence the 'Self Employment Promotion Initiative' (SEPI) will provide financial assistance to these trained youth who have completed the courses from recognized vocational training institutes, for establishment of their own self-employment projects.

The new loan scheme covers categories of Agriculture, Industrial, Information Technology, Automotive, Construction, Electronic & Telecommunications, Food, Refrigeration & Air condition, Farm Machinery, Digital Imaging and Printing, Jewelry designing and manufacturing, Welding & Fabrications sectors and other innovative technology areas. HDFC Bank expects to fulfill the financial needs of the youth who have undergone a professional training in a specific field from the vocational training institutions to start their own enterprise through SEPI Loan Scheme.

HDFC's primary objective has always been to serve lower and middle income groups to meet their needs of housing finance and allied services. With the amendment of the HDFC Act in 2011, the bank was able to diversify business operations. Under the new broader operations mandate, the Bank entered the Country's leasing, Micro Finance, SME and Microfinance Markets.

The bank has introduced National Agribusiness Development Loan Scheme, Commercial Scale Dairy Development loan scheme and 'Saubaghya' SME loans schemes recently and are more popular among the clientele. The Bank's mobile banking concept has widened the operational scope far beyond the physical limits of the branch network and has enabled the Bank to directly access thousands of customers located in rural and semi urban areas.