Lankaputhra Development Bank

Special Loan Scheme for productivity enhancement and commercialization in farming has been introduced by the Government of Sri Lanka with following objectives:

Objectives of the Scheme.

  • To provide financial assistance for farmers, farmer organizations and agro processing establishments for upgrading the sector through infusion of productivity enhancing technologies and practices.
  • To encourage private sector investors to invest in out grower system by providing required financial assistance.
  • Generate new employment opportunities in the agriculture sector and related activities.
  • Open avenues for small farmers to transform subsistent level to commercial level.
  • To improve the productivity in agriculture sector as a whole.

Target Groups

1. Small Scale Farmers and Farmer Organizations - Category 1
2. Agro Processing Establishments - Category 2
3. Commercial Scale Farming - Category 3

Collateral

Nature of the security will be decided by the bank considering the risk element of the business.

Details of the Loan Scheme


Small Scale farmers and
Organizations

( Category 1 )

Agro Processing

( Category 2 )

Commercial Scale Farming

( Category 3 )

Eligible Economic
activities

Purchase of machines and equipment, Use of hi tech

irrigation methods, Poultry
hatcheries, Horticulture
Floriculture Nurseries ,
Ornamental Fish Industry

Purchase of machines and
equipment ,
Use of hi tech irrigation
methods
Investment in Silo Storages ,
rice mills
Constructions of Rice mills
Purchase of machines and equipment,
Use of hi tech irrigation method
Extension services for
agricultural activities
Use of precision agriculture
Establishment of processing
plant.
Loan Amount Maximum Rs.5 Mn
(Maximum Rs.0.5 Mn for
Floriculture and
Ornamental Fish Industry)
Maximum Rs.300 Mn Maximum Rs.750 Mn
Period of Loan
Repayment
Maximum 5 yrs inclusive of
grace period
Maximum 2 yrs for
Working Capital Loans
Maximum 5 yrs inclusive of
grace period
Purchasing of Machines &
Equipment - Maximum up
to the use of Life Time of the
machinery and equipment
Maximum 2 yrs for
Working Capital Loans
Maximum 5 yrs inclusive of
grace period
Purchasing of Machines &
Equipment - Maximum up to the
use of Life Time of the
machinery and equipment
Maximum 2 yrs for Working
Capital Loans

Interest Rate

Click here to view rate sheet