Rural Credit
HNB, from the inception, was engaged in rural credit. In 1973, the bank in collaboration with a consortium of private sector companies under the name of "Agrohope" engaged in rural credit and the village adoption programme under the Debara-ara-wewa Scheme in the Moneragala district. It was financed by the bank through the Bandarawela branch.
During the period 1975 to 1978, our bank participated in a loan scheme with Ceylon Tobacco Co. Ltd to assist small farmers in growing tobacco in the Anuradhapura district. The mobile bank service operates in the region for disbursement and recovery of loans thereby taking banking to the farmers' doorstep which is a significant feature of the scheme.
In 1977 Hatton National Bank PLC commenced participating in the Comprehensive Rural Credit Scheme (CRCS) of the Central Bank with a package of financial assistance to the agricultural sector.
With the Govt. accelerated Mahaweli Dev. Scheme, HNB was invited in 1979 to participate in the pilot project in the H5 Area of the Mahaweli Scheme. The scheme covered an area of 12,500 acres of irrigated land allocated to 5,000 farmer settlers. In the Central & Uva Provinces, the bank channels a significant portion of its lending through Nuwara Eliya, Welimada & Bandarawela branches for cultivation of potato & vegetables.
The bank has been recognized by foreign funding agencies such as the World Bank & ADB since 1979 by accepting it as a participating credit institution for their refinance schemes. Today, the bank is involved in promoting rural sector refinance and non-refinance credit lines and provides comprehensive packages of financial services to develop the rural economy of the country.
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NCRCS (New Comprehensive Rural Credit Scheme)
NCRCS loan scheme provide financial assistance to cultivate short term crops such as Paddy, Chillies, Onion, Soya bean and upcountry vegetables. These loans to be fully repaid within 240 days. Production of Seeds & Planting material on a commercial scale and purchase of Agricultural produce under Forward sales contract system could be financed up to Rs 5 Mn & Rs 50 Mn respectively.
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Kapruka Ayojana Credit Scheme (Coconut Development)
Coconut plantation, intercropping, replanting, nursery development and farm equipment are eligible for financing under this scheme. Loans up to Rs 10 Mn with a repayment period of up to 5 years are available under 'Kapruka Ayojana' scheme.
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Development Credit Scheme
Development scheme offers financial assistance for Short term & Perennial crop cultivation, Farm machinery, Fisheries, Animal Husbandry and other income generating Agro based development activities. The amount of loan and repayment period can be arranged to suit the cash flow of the project.
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Aquatic Resources & Quality Improvement Development Credit Scheme
This loan scheme provides financial support for projects related to Inland fisheries & aqua culture such as fresh water fish & prawn production, nurseries, curing plants, tissue culture, ornamental aqua plants etc. Loans up to Rs 10 Mn can be arranged with a repayment period up to 5 years.
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Krushi Nawodaya Credit Scheme
Krushi Nawodaya loan scheme provides financial assistance to improve the income generating activities of small farmers and others who are engaged in different self employment activities in the agricultural sector. The maximum loan amount is of Rs. 100,000 and the maximum loan repayment period will be 3 years inclusive of grace period. However, exclusively for Drip Irrigation projects for the maximum loan amount is of Rs. 350,000.
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