The new “Manusavi” Migrant Worker Loan Scheme was launched on Monday (Dec 04) together by the Sri Lanka Bureau of Foreign Employment (SLBFE) and the Central Bank of Sri Lanka (CBSL).
Relevant loan proposal agreements were exchanged between officials of the SLBFE and the CBSL under the patronage of Minister of Labour and Foreign Employment Manusha Nanayakkara.
According to the SLBFE, the loan can be obtained for starting or expanding a business, buying, constructing or expanding a house, buying land or a vehicle, higher education of children or any other productive purposes.
The SLBFE has allocated a sum of Rs. 5 billion to implement this loan scheme, while the maximum limit of the loan a migrant worker can obtain is Rs. 2 million, and the maximum interest rate that can be charged from the borrower is 8% with a maximum period of 36 months given to repay the money.
A migrant worker is required to maintain a separate or a joint Personal Foreign Currency Account (PFCA) or Savings Account (RSA) in a licensed commercial bank and should have remitted foreign exchange to the respective account (at least within the past three months) to be eligible for the loan scheme.
To obtain the loan, applications can be forwarded to the respective bank before going abroad or while abroad, while the applicant can authorize a close relative through a power of attorney (POA) to receive the loan amount on their behalf.
Under the system, loans cannot be repaid in Sri Lankan Rupees (LKR), but the loan can be settled in LKR after returning to Sri Lanka upon completion of the foreign employment, to which the prevailing market interest rates will be applied.
Refinancing facilities are provided through the Regional Development Department (RDD) of the CBSL at an annual interest rate of 4% for the following licensed commercial banks that contribute to this initiative:
- Bank of Ceylon
• People’s Bank
• Commercial Bank
• Hatton National Bank (HNB)
• Sampath Bank
• Seylan Bank
• Cargills Bank
• DFCC Bank
• National Development Bank (NDB)
• Pan Asia Bank
• Union Bank (NewsWire)
