The Commercial Bank of Ceylon has announced an expansion of the scope of its ‘Green Loans’ to encompass technology and products that contribute to environment conservation and to include leasing of electric and hybrid vehicles.
Previously limited to households seeking funds for switching to solar power to reduce consumption of electricity from the national grid, Commercial Bank’s re-launched Green Loans and Green Leases now facilitate the purchase of energy-efficient household equipment, the installation of energy-efficient lighting for households, the purchase of hybrid or electric vehicles, solar panels and other machinery or equipment used for renewable energy, energy efficiency, emission reductions, water and wastewater management and waste management.
Offered at relatively low interest rates, these loans and leases are available to both permanent employees and self-employed professionals between the ages of 18 and 65, who have a minimum disposable income of Rs 50,000 a month, the Bank said.
Green Leases can be applied for 50% – 90% of the market value of the vehicles, solar panels or machinery/equipment financed, while Green Loans can be applied for up to 75% of the market value of energy-efficient household equipment, and installation of energy efficient lighting for households. These loans are subject to a maximum value of Rs 3 million and a minimum of Rs 50,000.
Commenting on this loan category, Commercial Bank’s Deputy General Manager – Personal Banking Mrs Sandra Walgama said: “Sri Lankans are becoming more environment conscious, a commendable trait that we think needs to be supported. The launch of these new products that provide financial support to very specific environmentally-conducive choices of our customers is yet another move on the part of the Bank to encourage efforts to foster a cleaner environment.”
The Bank’s Green Leases and Green Loans can be repaid within a period of seven years. Green Loan applicants have the option of repaying in equal monthly installments or on a reducing installment model. Green Lease customers too may choose to repay in equal monthly instalments or in structured rentals.
The general documentation process pertaining to security of the Bank will apply to these products. The current fixed interest rates per annum are 12.5% for up to three years, 13% for four years, 13.5% for five years, 14% for six years, and 14.5% for seven years, the Bank said.
The only Sri Lankan Bank to be ranked among the world’s top 1000 banks for eight years consecutively, Commercial Bank operates a network of 263branches and 782 ATMs in Sri Lanka. The Bank has won more than 30 international and local awards in 2016 and 2017 and 20 international awards in the first eight months of 2018.
Commercial Bank’s overseas operations encompass Bangladesh, where the Bank operates 19 outlets; Myanmar, where it has a Representative Office in Yangon and a Microfinance company in Nay PyiTaw; the Maldives, where the Bank has a fully-fledged Tier I Bank with a majority stake; and Italy, where the Bank operates its own money transfer service.