Regulatory Alerts2018-12-03 | Direction No. 10 of 2018Maximum Rate of Interest on Microfinance Loans
The Monetary Board of the Central Bank of Sri Lanka issued Direction No. 10 of 2018 to protect customers from exorbitant interest rates charged by Licensed Finance Companies. This directive mandates that the effective annual interest rate on microfinance loans, inclusive of all charges, must not exceed 35 percent. Licensed Finance Companies are required to report these loans under specific FinNet codes and adhere to the defined scope for micro-enterprises.
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