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Top 8 Ways to Borrow Money in Sri Lanka: A Comprehensive Guide

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If you’re in need of quick cash, Sri Lanka offers a variety of borrowing options to choose from. In this article, we’ll explore the top 9 ways to borrow money in Sri Lanka and provide you with valuable insights on how to   select the best option for your needs. Let’s dive in!

Bank Loans

Banks are the most popular financial institutions for borrowing money in Sri Lanka. They offer a wide range of loan options, such as personal loans, business loans, and vehicle loans.

To apply for a bank loan, you’ll need to provide documentation like a National Identity Card, proof of income, and credit history.

Here are some benefits of bank loans:


  • Competitive fees rates
  • Flexible repayment terms
  • Reliability and security


  • Lengthy application process
  • Strict eligibility criteria
  • May require collateral

Pawn Shops

Pawn shops, known as pawning centers in Sri Lanka, are another popular way to borrow money quickly. You can pledge valuable items such as gold jewelry, electronics, or vehicles as collateral in exchange for a loan.

Remember to read the terms and conditions carefully, as pawn shops usually charge higher fees rates compared to banks.

Benefits of pawn shops include:


  • Quick cash
  • No credit checks
  • Easy and straightforward process


  • Higher fees rates compared to banks
  • Risk of losing pledged items if unable to repay
  • Limited loan amounts based on the value of collateral

Microfinance Institutions

Microfinance institutions are designed to cater to the financial needs of low-income individuals and small businesses. They provide loans with relatively low-fees rates and flexible repayment terms. Some advantages of microfinance loans include:


  • Loans for small businesses and entrepreneurs
  • Minimal documentation
  • No collateral required in some cases


  • May have higher fees rates than traditional banks
  • Limited loan amounts
  • Some institutions may have strict eligibility criteria

Peer-to-Peer (P2P) Lending

P2P lending platforms connect borrowers with individual investors who are willing to lend money at mutually agreed-upon fees rates. Sri Lankan P2P lending platforms offer a variety of loan options, including personal and business loans. Benefits of P2P lending include:


  • Competitive fees rates
  • Online application process
  • No collateral required


  • Not all platforms are regulated
  • May take longer to get funds compared to traditional loans
  • Limited availability of lenders for high-risk borrowers

Credit Cards

Credit cards offer a convenient way to borrow money for short-term needs. Many Sri Lankan banks provide credit cards with attractive features like reward points, cashback offers, and low-fees rates on balance transfers. Keep in mind that credit card debt can accumulate quickly, so it’s essential to use this option responsibly.


  • Instant access to funds
  • Convenient for emergencies
  • Reward programs


  • High fees rates if not paid in full each month
  • Easy to accumulate debt
  • May require a good credit score

Salary Advances

Some employers in Sri Lanka offer salary advances to employees in need of urgent cash. This option allows you to borrow a portion of your future salary, which is then deducted from your paycheck. Benefits of salary advances include:


  • No fees charges
  • Convenient and fast
  • No impact on your credit score


  • Limited to your employer’s policies
  • Reduces future paycheck
  • Not a long-term solution

Family and Friends

Borrowing money from family and friends is another option, especially when you need a small amount of cash. Remember to treat these loans professionally to maintain healthy relationships with your loved ones.


  • Flexible repayment terms
  • Low or no fees rates
  • No credit checks


  • Potential strain on personal relationships
  • Lack of legal protection
  • May not be a reliable source of funds

Loan Aggregators

Loan aggregator websites compile information from multiple lenders, allowing you to compare loan offers and choose the best one for your needs. These platforms help you find loans with competitive fees rates, flexible repayment terms, and other attractive features.

Remember to read the terms and conditions carefully before accepting any loan offer.


  • Easy comparison of loan offers
  • Saves time and effort
  • Provides a range of options


  • Possible hidden fees
  • No guarantee of loan approval
  • May receive marketing communications from multiple lenders is a popular online platform in Sri Lanka that provides quick and easy access to short-term loans. This platform connects borrowers with reliable lenders, offering a hassle-free experience.

To apply for a loan through, you’ll need to provide basic documentation such as a National Identity Card, proof of income, and credit history. Once your application is approved, the loan amount is disbursed directly to your bank account.


  • Fast approval and disbursement
  • Simple online application process
  • Multiple loan options


  • May have higher fees rates compared to traditional banks
  • Limited to participating lenders


When it comes to borrowing money in Sri Lanka, there are numerous options to choose from. Before deciding on a borrowing method, consider factors such as the loan amount, repayment terms, fees rates, and your credit score. Make sure to research and compare various loan offers, including those from, to find the best solution for your financial needs.

We hope this comprehensive guide on the top 9 ways to borrow money in Sri Lanka has provided you with the information you need to make an informed decision. Happy borrowing!