The government has released a revolving fund to the District Secretaries of the Northern Province and Anuradhapura district in Sri Lanka to assist over indebted micro borrowers to settle their loans borrowed at higher interest rates. This revolving fund can be utilized by the clients of any of the MFIs, to settle outstanding loans up to Rs. 100,000/- at 6% per annum which are disbursed through Cooperative Rural Banks (CRBs) and SANASA societies.
As an initial step, the LMFPA convened an online discussion between the Director Planning of the Anuradhapura District Secretariat and members operating in the Anuradhapura district on 3rd May. The objective of this discussion was to discuss the procedure regarding the utilization of this revolving fund, by interested member organization operating in this area.
Going forward with this government programme, LMFPA members agreed to waive off the interest component of the delinquent borrowers and also provide additional benefit to their clients to encourage them to take up this scheme. LMFPA will be coordinating with the district secretariats in the implementation of this programme.