DFCC Bank unveils ‘Krushibala’ loan scheme to enhance local Agri businesses
DFCC Bank announces the ‘DFCC Krushibala’ credit scheme, introduced exclusively to assist SMEs and Corporatesengaged in the local Agricultural and related sectors.
Thenew‘DFCC Krushibala’ credit scheme introduces loan facilities of up to LKR 100 Mn, with payment periods of 5 to 7 years based on the type of loan, at a concessionary fixed interest rate of 7% per annum. The core objective of the scheme is to enable and empower SMEs in the Agriculture & related sectors and build a strong platform through which they may work towards overcoming and rebounding from the difficulties faced due to the on-going Covid-19 pandemic.
Loans under this scheme can be obtained for Cultivation (Tea/ Rubber/ Coconut / Floriculture/Rotational Crop Cultivation/Inter Cropping), Livestock, Dairy, Agriculture Processing (Rice Milling, Grain Legume Processing, Fruit and Vegetable Processing, Dehydration etc.),Warehousing and Enhancing Storage Facilities, Development of Commercial Agriculture and Hi-Tech Agriculture (Control Environmental Agriculture / Export Agriculture Crops, Organic Farming/ Nursery/Seed Production, Drip Irrigation, Tissue Cultureetc.) and Introducing / Capacity Enhancement of Organic Fertilizer Manufacturing.
The Bank has committed to support the organic fertilizer manufacturing through this scheme at a historic time when the country is transforming to organic farming. Therefore the financial support to entrepreneurs and enterprises that are venturing out to meet the demand of organic fertilizer is crucial at this juncture.
DFCC Bank firmly believes that it is of paramount importance to introduce such concessionary financial schemes to uplift local industries to secure economic growth and financial stability. The lack of access to sources of capital, and severely restricted cash flows due to stagnant economic conditions have proved to be a significant hurdle in the path of economic development. Keeping this in mind, the credit scheme and fund allocation to the agricultural sector, which employs a significant percentage of the local population, and accounts a heavy portion of the local GDP, stands to have crucial, noteworthy, positive consequences for all stakeholders involved.
The Bank has also paid attention to the fact that whilst gender equity has been achieved in terms of education, it is still lacking in terms of employment, entrepreneurship and ability to conduct business. As such, DFCC Bank aims to assign preference to women-led businesses and those that involve the adequate participation of women, in terms of employment, the inclusion of women in positions of management and/or decision-making ability and looks at the number of beneficiaries related to each business, with the overarching goal of securing economic gender equity.
Commenting on the launch of the loan scheme, DFFC Bank CEO,Mr. Lakshman Silva stated, “DFCC Bank is delighted to contribute towards the empowerment of Small and Medium Enterprises engaged in Agriculture throughout the country with the launch of our new loan scheme. The ‘Krushibala’ scheme has the potential to significantly enhance economic development, by driving growth across key priority sectors in SME and corporate markets. Through this scheme, we also strive to drive economic and financial gender equity and inclusivity across the priority sectors.The ‘Krushibala’ schemeis the next step on DFCC Bank’s journey to secure economic resilience and sustainability and showcases the potential socio-economic benefits that will be brought about by the Bank’s long-term approach and strategy”.