Financial Services

There are 9 credit products offers to clients and details are given below.

  • Livelihood Development Loan (LD Loan)– Rs, 20,000.00
  • Micro Enterprise Development Loan (MED-1 loan) – Rs. 50,000.00 or less
  • Micro Enterprise Development Loan -2 (MED-2 Loan) Rs. 100,000.00 or less
  • Family Welfare Loan (FW Loan) Rs. 5000 to Rs. 50,000
  • Cultivation Loans
  • Housing Loans
  • Machinery and Tools Loans
  • Emergancy Loans
  • Micro Business Assistant Loan (MBAL)
  • Vandana Loan Rs. 65,000 to Rs.100,000

1. Livelihood Development Loan Rs. 20,000
These loans provide to new clients or existing clients. For new clients, it is necessary to have at least 3 months group process. However Loan Officer satisfies about the integrity of the client, loan could be recommended even before 3 months.  

2. Micro Enterprise Development Loan-1. Rs. 50,000
MED-1 is focuses on formal micro enterprises development with loan of LKR 50,000 or less. Only A-graded clients entitle for LKR 50,000 loans. Clients under the LDL scheme or new clients could join the program but lending is specifically on selected micro enterprises development. CBLM has developed set of appropriate micro enterprises for each branch and lending is focused on those enterprises. Even other enterprises are supported with specific attention. It is compulsory to follow two-hour business skills development training session where clients fill the simple business plan for the selected micro enterprises. Branch Managers and Loan Officers facilitate the session. The objective of the session is to assess the ability of the selected enterprises to generate adequate monthly income / profit from which client can repay the loan installment. In the process, a close relationship between clients and Loan Officer is developed which facilitate the follow up process. This loan offers within 2 week time duration and the loan period varies from 2-3 years depending on client repayment capacity.  

3. Micro Enterprise Development Loan-2. Rs. 100,000
MED-2 is for micro entrepreneurs to expand the same enterprise or further development other enterprises. The size of the loan is Rs. 100,000 but could go up to 250,000 depending on clients and the business. Like in other loans, either existing clients or new clients could enroll in the program. However priority is given for existing clients. It is compulsory to follow one day training and Branch Manager and LO manage the session. The basic business management skills are provided in the training and participants fill detail business plan with the assistances of trainer. Feasibility studies also carry out about the selected business through SWOT analysis and market review. This loan offers within 2 week time duration and the loan period varies from 2-5 years depending on client repayment capacity. 

4. Family Welfare Loans – Rs. 5000 to 50,000
This loan is focus on specific requirement such as health, educations and religious purposes. The loan size is Rs. 5,000 to 50,000 and any existing client could obtain the credit facility as a second loan depending on credit disciplines of first loan. Later this loan extent to cover water and electricity supplies to houses and purchasing computers, mobile phones etc. considering the loan need and size, FWL provide to current client as second loan base on client repayment ability and credit discipline.  

5. Cultivation Loans – Rs. 5000 to 50,000
Credit facility to cultivation is a major issue for rural poor farmers whose main income source is seasonal paddy cultivation or upland cultivation in rainy seasons. The formal finance sector not provides easy loans to these clients due to lack of land ownership, clear land title, crop insurance requirements, cultivation of state lands etc. Hence rural poor deprive the obtaining a cultivation loan to manage their sole income generating activity. Hence CBLM introduced CL product with simple terms and conditions. CL has great demand in rural areas and some branches have over 50% CL in total loan portfolio. However CL delinquency rate was significantly higher compare to other loan products in the past but CSC process has reduced the credit risk at present. Interest rates are varies with loan amount of 20,000,50,000 or 100,000. After considering the delinquency issues, CL provide in different combination of loan duration with or without grace period.  

6. Housing Loans – Rs. 20,000 to 100,000
Housing loan product has very high demand in rural areas and loan amount varies from LKR 20,000 to 100,000. Rural poor don’t have very clear land title or high rated guarantors to obtain housing loans from banks. Hence HL has higher demand and some branches biggest portfolio is HL. However HL also has higher credit risks and need better feasibility.  

7. Machinery and Tools Loans

This loan product focus on providing 2-wheel tractors, agriculture tools and motor bike for good matured clients as an appreciation of their relationship with CBLM. There are very few such loans in the CBLM portfolio largely because demand for such loans are limited and also CBLM has limited operational duration in branch area. CBLM purposely limited this loan product largely due to limited loan capital it has but may have better demand in the future with increasing loan capital.  

8. Emergancy Loans (EL) – Rs. 10,000 to 50,000
El introduced in later part of 2011 based on clients demands in several branches. There were fewer opportunities to client to get a second loan within a day or two to meet emergency needs. Hence EL provide to good clients as a second loan if existing loan repayments are good and clients can justify the need of such loan. LKR 10,000 to 50,000 provide as EL which has to pay back within one month duration but client could ask for 1-2 months extension if difficult to pay. The demand for EL increased rapidly with the introduction and EL contribution to total portfolio is about 40% at present. In fact, CFLM cannot meet the EL demand at present and there are several complain from clients. Branches also increased the EL portfolio due to higher income compare to other products and gradually delinquency issue arisen in recent past. Hence additional guidelines and CSC process introduced to EL disbursement to curtail the delinquency issue.

9. Micro Business Assistant Loan (MBAL) – Rs. 5,000 to 10,000

This loan product focus on A-Graded clients who are doing a permanent micro business with daily income and living close to branch office less than 5 km radius. Considering the repayment difficulties as one bigger installment and also base on market research, MBAL product developed to facilitate micro business development process with repayment of the loan in 7 installments within 2 weeks duration. Loan amount is LKR 5000 initially and can increase to LKR 10,000 after 6 months if client repayments are in line with set repayment schedules.

10.0 Vandana Loan – Rs. 65,000 to 100,000

Clients who are A grade and has completed two years good relation ship continuously with CBLM eligible to request Vandana Loan for Dambadiva Vandana/ Vatican/Thirupathy pilgrimage .Client need to pay an advance to tour agent and submit full document set for the clarification .Client/spouse parents also entitle but loan is issued to client,client has to provide documents to prove the relationship