Short answer: People's Bank offers several personal loans rather than one, and which one you can get depends on who you are. Salaried workers and the self-employed can take the Pahasu personal loan of up to Rs. 3 million. Teachers, armed forces members and public servants have their own schemes of up to Rs. 4–5 million over up to 10 years, and pensioners can borrow against their pension for up to 15 years, repaying until age 75. Rates have risen this year: the Central Bank raised its policy rate to 8.75% in May 2026, and the benchmark AWPR reached 11.04% in the week to October 2, 2026. People's Bank's own key fact document for its PrimeScore loan listed 10.0% for up to three years and 10.5% for three to five years in September 2026.
LKPB1312Below: the loan schemes side by side, what a loan costs, eligibility and documents, fees, and how rates are moving.
People's Bank personal loan schemes
| Scheme | For | Maximum amount | Maximum term |
|---|---|---|---|
| Pahasu personal loan | Salaried public and private sector staff, businesspeople and the self-employed with steady income | Rs. 3 million | Up to 10 years |
| PrimeScore loan | Eligible customers as set out in the bank's key fact document | See key fact document | 5 years |
| Gurusetha | Teachers in government, Piriven and other schools | Rs. 4 million on personal guarantors; more with property | 10 years |
| Deya Viru Pranama | Serving members of the armed forces | Rs. 5 million | 10 years |
| Public servant concessionary loan | Permanent, pensionable state and local government officers | Rs. 5 million or 7 years' basic salary, whichever is lower | Per government circular |
| Pensioner loan | Pensioners, including those paid through People's Bank and some state institutions | Based on repayment capacity from net pension | 15 years, repayment up to age 75 |
Most schemes allow fixed or variable rates. Comparison sites often say unsecured personal loans run for five years at most, but People's Bank's own documents allow up to 10 years for Pahasu and the professional schemes.
What a loan costs
On Rs. 1 million over five years, the monthly instalment is about Rs. 21,247 at 10.0%, Rs. 21,494 at 10.5% and Rs. 23,268 at 14.0%, with total interest of roughly Rs. 275,000, Rs. 290,000 and Rs. 396,000. Published Pahasu rates differ between sources, from tariff guides quoting 13.5% to 16% to comparison tables showing up to 18%, so the rate in your offer letter is what counts. Ask for the key fact document, which shows the rate, fees and total cost.
Eligibility and documents
- Age: generally 18 to 60, with repayment by retirement age; pensioners can repay up to 75.
- Income: regular salary or business income; many schemes need your salary assigned to People's Bank and an employer confirmation letter.
- Documents: NIC, passport or driving licence; last three months' pay slips; three to six months of bank statements; employer letter with your post, salary and service; utility bill if your address differs from your NIC; guarantor documents where needed.
- Credit record: the bank checks your CRIB report; missed payments elsewhere can lead to refusal.
Fees and penalties
- Processing fee: charged on approval; check the amount in your key fact document.
- Penal interest: 2% a year on overdue instalments.
- Early settlement: charges apply under bank policy; ask before you sign if you expect to repay early.
Where rates are heading
The Central Bank raised its Overnight Policy Rate by 100 basis points to 8.75% in May 2026 and kept it there through the end of September. Lending rates followed: the monthly AWPR rose to 10.34% in June, the weekly figure to 10.62% in July and 11.04% by October 2. A variable-rate loan will reprice with these benchmarks, so a fixed rate gives certainty if you expect rates to stay high. To compare with other banks, see our guide to personal loan rates in Sri Lanka.
The Central Bank held its Overnight Policy Rate at 8.75% on 30 September 2026, so the May increase was not followed by another hike. Headline inflation reached 8.0% in August–September, but the CBSL considers it temporary and does not plan a fresh hike for now.
The weekly AWPR stood at 11.04% on 2 October 2026, up 10 basis points from the prior week. The CBSL expects its earlier 100 bps hike to keep filtering into commercial lending rates through early 2027, so floating-rate loans will reprice upward. For peer pricing see our Sri Lanka personal loan rates comparison.
Several rules and schemes apply from October 2026 onward. From 1 October the LANKAQR P2P transfer limit is Rs. 50,000 per transaction with a Rs. 25 fee cap; details are in our LANKAQR payments guide. Under Budget 2026 public servants get a concessionary housing loan up to Rs. 5 million at 4% on the first Rs. 3 million and 2% on the next Rs. 2 million, a distress advance of Rs. 400,000 at 4.2% and a festival advance of Rs. 15,000. From 1 January 2027 Banking Act Directions No. 01 of 2026 on outsourcing and cloud services take effect, extending board accountability and audit access to third-party systems.
In short
Pick the People's Bank scheme that matches your job or pension, since the special schemes for teachers, armed forces, public servants and pensioners allow larger amounts and longer terms. Compare the rate and total cost in the key fact document, choose fixed or variable with today's rising AWPR in mind, and keep your CRIB record clean.
Before you sign, request the key fact document in Sinhala, Tamil or English, since CBSL consumer protection directions require it before contracting and it must show the all-in effective rate and the full fee schedule. If a dispute arises, record it in the branch complaint book first, then escalate to CBSL's Financial Consumer Relations Department or the Financial Ombudsman, and the Credit Counseling Centre can advise on debt. On 1 October 2026 the LANKAQR P2P limit became Rs. 50,000 per transaction with a Rs. 25 fee cap, so compare the processing fee and early settlement charge against the headline rate rather than the monthly instalment alone. Check whether your bank appears on CBSL's prohibited schemes list.