29 February 2024, Colombo: Seylan Bank has been selected as one of the financial institutions entrusted with disbursing the Department of Development Finance’s innovative loan scheme for paddy purchasing. This groundbreaking initiative aims to provide accessible financial assistance to paddy millers, paddy collectors, and paddy storage owners, contributing significantly to the empowerment and upliftment of the SME sector.
Effective from 1st February 2024 to 30th April 2024, the paddy loan scheme sets out to address the financial needs of paddy millers, collectors, and storage owners, enhancing their capacity to contribute to the economy. Seylan Bank was selected as a partner bank for this initiative, in recognition of the Bank’s commitment to fostering economic growth and supporting small and medium enterprises (SMEs).
Key features of the paddy loan scheme include a competitive interest rate of 11% and a repayment period of up to 6 months. These favourable terms are designed to make the scheme particularly attractive for paddy collectors, who can pledge their paddy to the Bank as collateral. This will empower paddy collectors to access much-needed financial resources and contribute to the overall growth of the paddy industry.
Under the scheme, paddy millers meeting specific criteria, including a valid business registration and a maximum daily milling capacity of 25 MT, can apply for loans of up to Rs. 50 million. Meanwhile, paddy collectors and paddy storage owners with a valid business registration are eligible for loans of up to Rs. 25 million. The Department of Development Finance envisions that these funds will stimulate economic activities within the paddy sector and, in turn, positively impact the broader economy.
Seylan Bank’s role as a financial intermediary in this transformative initiative underscores its commitment to being an enabler for SMEs. By facilitating access to affordable financing, Seylan Bank is contributing to the economic empowerment of paddy millers, collectors, and storage owners, fostering sustainable growth within the SME sector.