Borrower friendly approach through credit counselling

By Lalin FERNANDOPULLE

Banks are willing to reschedule and extend the loan repayment period of customers who are unable to service loans due to financial constraints, said Head of Credit Counsel Centre, Siromi Wickramasinghe.

She said a humane approach to the problems of borrowers is vital to sustain an effective financial system and build trust in the institutions that lend.

Siromi Wickramasinghe

The Central Bank in collaboration with the Sri Lanka Banks’ Association set up the Credit Counsel Centre to provide professional counselling that will help customers to overcome difficulties in dealing with financial institutions.The concept of credit counselling is practised among developed countries and is a popular move to help resolve issues between the institution and the customer.

“The setting up of the counselling centre is a timely move amidst the crisis in the country’s financial system following the fallout of non registered financial institutions. The Centre will advise people on what course of action needs to be taken and will suggest to banks to be lenient in implementing regulations”, she said.

The Credit Counsel Centre comprises 15 retired professional bankers who will provide free counselling at the Centre for Banking Studies at Rajagiriya.

The Credit Counsel Centre has attended to over 160 counselling cases during its first month in operation and the response has been positive. Banks have shown interest in waving off part of the interest of customers and extending the interest payment period considering the plight of the customer.

Wickramasinghe said there is a great demand for professional counselling due to lack of knowledge on the banking regulations and poor access to fiance.

“With the opening up of the North and East provinces, there are more opportunities for such services through a wide branch network”, he said.

Plans are afoot to provide counselling through the islandwide bank branch network to enable easy access to services.

She said the Centre could only suggest banks to be lenient and take a more customer friendly approach to problems.