The SME Development Finance Corporation (SDFC) has started accepting loan applications as part of the government’s COVID-19 stimulus loan scheme.
The Maldives government launched the stimulus loan scheme to assist Small and Medium-sized Enterprises (SMEs) in recovering from the financial challenges caused by the COVID-19 pandemic. The loans issued under the scheme by Bank of Maldives (BML) and the SDFC have an interest rate of 6%, a grace period of 1 to 2 years, and a repayment duration of 4 years.
According to the government, as part of the stimulus loan package, the SDFC will provide businesses with loans of up to MVR 1 million as well as the necessary technical help.
The loans would be offered to SMEs, with preference given to businesses in the direst financial straits, such as restaurants, cafes, and gyms.
Businesses can apply for the stimulus loans through the SDFC website’s online portal.
Last month, BML started accepting applications for stimulus loans, with loans of up to MVR 10 million available to SMEs through the bank.
The European Investment Bank’s (EIB) MVR 375 million credit facility is used to fund the stimulus loan package. Last year, the EIB provided a similar borrowing arrangement.