“Over 48% Lankans borrow from non banking or unsolicited channels”

Over 48% of Sri Lanka people resort to borrowing from non banking or unsolicited channels, disclosed Deputy Chairman / Managing Director at Alliance Finance Company PLC Romani de Silva. He said that most of them borrow from friend’s relatives or friends or relatives from overseas.

“Some also pawn their harvest/ crop in advance and take credit. In addition, others go to money exchanges and unlicensed pawning shops.” These are not registered with banking channels.”

He said in a bid to get them to banking channels and provide them credit with minimum collaterals, Alliance Finance Company has been providing credit to the masses at very competitive rates. “We look at areas where other licensed banking and financial institutions don’t look at and hence we were the first institution to offer leasing facilitating for three wheelers in the 1980’s.”

He also said that they have also been providing agro loans as well mainly targeting the SME sector. De Silva said that they have also observed that most of the unbanked loan transitions are happening outside the Western province and they now reach people outside the WP via their strong branch outlets.

“Around 8% of our profits go back to fund sustainable CSR initiatives and we have already planted over 7500 trees and have not claimed carbon credit for it.”

Source: Daily News