The Government has initiated a special loan scheme for Northern entrepreneurs under the Vadakkin Vasantham programme.

A total number of 1,875 loans to the value of Rs.264 million have been disbursed under this scheme by the People's Bank and Bank of Ceylon up to November 5.

In addition 5,927 beneficiaries have also registered under People's Bank, Bank of Ceylon, Hatton National Bank and Sanasa Development Bank to obtain credit facilities under the loan scheme, reported Daily News.

Out of the total granted, 47 percent of loans (890) have been disbursed for agricultural purposes while 28 percent (524) were for trade and service sector activities, the Daily News report added.

In agriculture, farmers have shown a keen interest to obtain loans for fruit cultivation, grapes, banana and livestock development activities.

The balance 25 percent (461) has been obtained by borrowers in the fisheries, small and micro-industries sectors in the Jaffna Peninsula, the report added.

The Vadakkin Vasantham special loan package that was launched by President Mahinda Rajapaksa on July 13 is being implemented with loans up to Rs.200,000 being granted at an interest rate of 12 percent per annum, with repayment over a period of five years, the report further stated.