Jul 19, 2020

Credit card interest rate still at 28% over Central Bank delay

Although the government has announced that the interest rate on credit cards will be reduced to 15 percent, it is said that the Central Bank of Sri Lanka (CBSL) is yet to issue instructions on this regard to commercial banks.

Accordingly, interest rates on credit cards issued by commercial banks and financial institutions are currently in the range of 28 percent.

Consumers point out this is unfair as credit interest rates have been reduced to 04 percent and credit card interest rates should be slashed accordingly. 
Meanwhile, it is also reported that some credit card holders have not received the benefit of the two-month long moratorium.

Also, although the CBSL has instructed loans to be given for Small and Medium Enterprises affected by the Covid-19 epidemic, at an annual interest rate of 4%, it is reported that many banks are quite slow when providing loans at this low interest rate.

4% loan only for the affluent?

One of the reasons for this is that the lending process remains unchanged.

Another reason is that applicants are finding it difficult to meet the conditions requested by the banks.

It is reported that many SMEs in the country have been forced to be closed after these loans are only passed to affluent businessmen and close associates of the bank managers.

This situation has also led to a large number of people losing their jobs.

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