More Sri Lankans Seek Loans

By Indika Sri Aravinda

The number of Sri Lankans obtaining loans has risen in recent times with over Rs. 5 million in loans being obtained from various financial institutions to date, the Credit Information Bureau of Sri Lanka said.
General Manager of the bureau Gamini Karunaratne said that loans are being given in Sri Lanka by 92 financial institutions including banks and leasing companies.
Karunaratne said that when obtaining a loan the information of the customer is sent by the financial institution to the Credit Information Bureau to check if the customer had obtained a loan on a previous occasion.
He said that the Credit Information Bureau receives 10,000 requests from banks and other financial institutions a day which shows that so many people are applying for loans.
However he said that most people at times find it difficult to repay the loans especially when taking a loan using a credit card.
He said this results in a customer’s credit card being suspended and the customer also falling into debt.
The Credit Information Bureau is urging the Central Bank to have a re-look at the use of credit cards by customers as most people have no control on its use.