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For advance payments below Rs. 100,000, 10% interest waiver is available:
Pawn loans increased to Rs 571 billion by March 2024:
Cabinet spokesperson and Mass Media Minister Bandula Gunawardhana said the cabinet has approved relief facilities for those who have pawned their gold jewellery in banks.
He spoke at the weekly Cabinet press conference held by the Government Information Department yesterday.
The huge economic crisis that the country went through in the past had a direct or indirect negative impact on every sector of the economy and due to this crisis, the gold jewellery pawn business accelerated.
The outstanding amount of pawn loans was Rs 21,000 crore in 2019 and increased to Rs 57,100 crore by March 2024, an increase of 172%. Considering the above, licensed banks have recognized the need to provide relief to the low-income groups who have obtained pawn loans from them.
The Cabinet, therefore, approved the resolution moved by President Ranil Wickremesinghe in his capacity as Minister of Finance, Economic Revitalisation and National Policy to implement an appropriate scheme to provide interest relief from the State Treasury on personal pawn advances of up to Rs100,000 obtained from licensed banks on or before June 30, 2024, up to a maximum relief of 10% per annum.
Ishara Mudugamwa
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