Sri Lankan migrant workers will be able to obtain housing loans ranging from Rs. 500,000 to Rs. 10 million under the newly launched “Ethera Diriya” housing loan scheme.
The Sri Lanka Bureau of Foreign Employment (SLBFE) signed agreements with DFCC Bank and Union Bank on Thursday (10) to implement the scheme. The agreements were signed under the patronage of Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath and Minister of Housing, Construction and Water Supply Susil Ranasinghe.
Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra also attended the event.
The SLBFE plans to enter into similar agreements with nine more banks, bringing the total number of participating banks to 11.
Eligible migrant workers will be able to repay the loans over a period of up to 10 years. The loans are intended to support housing-related needs, including construction of homes.
A key feature of the scheme is that the SLBFE will reimburse participating banks for part of the interest charged on eligible loans under an approved reimbursement mechanism. The government has allocated Rs. 126 million for this purpose for 2027.
The maximum annual interest rate considered under the scheme is 15%. If a bank charges an interest rate above 15%, the borrower will be responsible for the additional interest.
Applications must be submitted through participating banks, which will independently assess applicants’ eligibility, repayment capacity, creditworthiness and collateral requirements before deciding whether to approve or reject a loan.
Once an application receives preliminary approval, the SLBFE will verify the applicant’s registration with the bureau, overseas employment status, foreign remittances and other eligibility requirements.
The participating banks will remain responsible for approving, disbursing and recovering the loans, while the SLBFE will reimburse the eligible portion of interest in accordance with the approved conditions.
Banks will submit loan repayment confirmations, interest calculations and reimbursement claims to the SLBFE every six months. The bureau will verify the claims before crediting the approved reimbursement amounts to the relevant loan accounts.
The scheme has been introduced to help migrant workers use their overseas employment income to meet their housing needs through concessionary financial facilities. (Newswire)
