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| MIRIDIYA SAMPATH LOANS Aquatic Resources and Quality Improvement Project (ARDQIP) ADB funded Aquatic Resources and Quality Improvement Project (ARDQIP) has commenced a special loan scheme for entrepreneurs who are willing to take part in aquaculture enterprises. This scheme is open for entrepreneurs who are already in aquaculture related enterprises as well as potential investors to the sector. The scheme has two major components. 1.Small & Medium Size Enterprises Component Credit under this component to establish aquaculture enterprises will be implemented with the assistance of the National Development Bank (NDB) on commercial terms. Micro credit component will be implemented with the assistance of the National Development Trust Fund (NDTF). Loans provided by NDTF are channeled through partner organizations (NGOs or CBOs). Partner organizations are selected by NAQDA and NDTF based on eligibility criteria satisfactory to ADB.
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Miridiya Sampath Loan scheme for the development of Inland Fisheries and Aquaculture The Government of Sri Lanka (GOSL), with the assistance of Asian Development Bank (ADB), has made arrangements to implement a project to upgrade the inland fisheries and aquaculture sub-sector. ADB has agreed to provide Rs. 2,000 Mn out of the total investment of Rs. 3,000 Mn of this project, by way of a soft loan to the GOSL. The key objectives of this project are to improve food security and reduce poverty, especially in rural areas, by promoting market driven and sustainable management of inland fisheries and aquaculture through resource development and quality improvement. Initially, this project will be implemented in Anuradhapura , Ampara, Badulla, Batticaloa, Hambantota, Kurunegala, Matale, Monaragala, Nuwara Eliya, Polonnaruwa, Puttalam, Rathnapura, Trincomalee and Vavuniya Districts. Among other activities, the project consists of approximately Rs. 600 Mn for provision of credit facilities on commercial terms. These funds will be available for small and medium enterprises engaged in inland fisheries, aquaculture and related projects through the banking system of the country. NDB is acting as the "apex" agency to administer this credit line. Details of this credit program are given below : Who are the eligible borrowers? Sole proprietorships, partnerships, limited liability companies and cooperative societies are eligible for credit facilities under this loan scheme. What is the eligible size of the project? For the purpose of this credit program, the eligible enterprise is defined as a business where the fixed assets at original cost (excluding land & civil constructions) does not exceed Rs. 20 Mn on completion of the project financed by the loan. However, the investment in total fixed assets in the case of subprojects where the main investment is in land & buildings, should not exceed Rs. 20 Mn inclusive of the cost of land and civil construction. Loans will be considered for the establishment of new enterprises as well as for expansion of existing enterprises. What are the eligible enterprises? The projects relating to inland fisheries and aquaculture are eligible to finance under this loan scheme. The projects in the inland fishery and aquaculture sector that will help to improve the quantity or quality of products, improve marketing and consumption of such products, etc., will be eligible for financing. Some examples of such projects are given below: Production of fresh water fish
How much should the borrower contribute ? The borrower should contribute a minimum of 25% of the overall cost of the project in the form of equity. What is the basis for granting a loan facility? In addition to the other eligibility criteria, the financial, economic and commercial viability of the project is the primary concern in approving a loan facility. Other factors that will be taken into consideration are the experience, integrity and managerial capabilities of the entrepreneurs. Market prospects of the project and technical feasibility of the project will also be considered. What are the principle terms? Loan Amount - Up to 75% of the cost of the project, subject to a maximum of Rs. 10 Mn. Repayment Period - 3-5 yearsGrace Period - 12 months maximumInterest Rate - A competitive rate of interest based on market conditions will be available under this credit line. How to apply? Information and guidance could be obtained from the following officer's of the given Institutions: Aquatic Resource Development & Quality Improvement Project
Bank of Ceylon Mr. W.A.C. Tissera 011-2336707 Commercial Bank Mr. Gamini Jayadewa 011-2336707 Hatton National Bank Mr. K.M.B.D. Rackogama 011-2661514 Seylan Bank Mr. Srilal Amarasinghe 011-4701805 National Development Bank Mrs. Daya Chandrakumara 011-2437701 Project Proposal It is required to prepare a project proposal giving following details and submit it to the relevant Bank branch. • 1. Name of the company • 2. Legal status • 3. Location • 4. Objective/s of the project • 5. Project description • 6. Type of products • 7. Fixed assets requirement for the new project • 8. Utilities • 9. Loan requirement • 10. Financial feasibility • 11. Details of new employment created • 12. Schedule of implementation |
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NATIONAL DEVELOPMENT TRUST FUND / GUARANTEED CO LTD. CREDIT AND MICRO ENTERPRISES DEVELOPMENT PROGRAMME FOR THE ALLEVIATION OF POVERTY National Development Trust Fund (NDTF) and Aquatic Resources and Quality Improvement Project (ARDQIP) General Guidelines 01. Eligibility Criteria for Registration at a Partner Organization (A) Should be one of the following organizations registered under the relevant Act/Ordinance i. Non Government voluntary organizations ii. Cooperative organizations iii. Limited Liability companies iv. Banks involved in micro credit works (B) i. 02 years experience in micro enterprises credit with a rate of recovery of over 70% ii. If rate of recovery is over 90% - 01 year experience in micro enterprises credit would be considered sufficient iii. Proven institutional strengths to the satisfaction of NDTF 02. Eligibility criteria of beneficiaries (A) Monthly income of the family is below Rs.3,000/- (B) Should be a member of a self help group organized through social mobilization programmers with the experience in group savings and micro credit.
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03. Size of Loan Stage I - Up to a maximum of Rs. 30,000 /= Stage II - Up to a maximum of Rs. 50,000 /= Stage III - Up to a maximum of Rs. 75,000 /=
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Loan amount would vary according the minimum loan reqirement of the project |
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04. Repayment period Maximum repayment period is 36 months including a grace period of 6 months However, repayment period of loan to be decided taking into consideration the income pattern of the project. 05. Rate of interest Loans are made available to partner organization at the interest rate of 7% per annum on a reducing basis. There is no ceiling fixed on-lending rates of part organizations. However, it is expected that the partner organizations leavy a reasonable rate of interest on the ultimate borrowers as this is a scheme for alleviation of poverty. 06. Collaterals/Security Requirements Collateral free loans, however interse guarantee of group members would be considered. 07. Group Contingency Fund The ultimate borrower should contribute 5% of the loan to the above fund. This contribution is non-refundable and should be deposited with an interest earning account. The borrower has no right to claim his contribution under any circumstance. For further clarification the NDTF may be contacted. National Development Trust Fund (Guarantee) Co. Ltd. Aquatic Resource Development & Quality Improvement Project
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