SDFC to introduce Islamic Finance products

Source: Avas

The recently opened non-bank financial institution for local small to medium businesses, SME Development Finance Corporation (SDFC), will be introducing new Islamic-finance based products under the corporation according to its managing director.

The managing director of SDFC, Mr Ahmed Zeenad stated that the financing corporation is currently planning on introducing Islamic-finance based products, though he did not disclosed exact dates.

Furthermore, Mr Zeenad also noted that SDFC will shortly introduce a specific loan scheme aimed at local start-up ventures in need of capital.

Under the loan schemes, local businesses are able to either place lands or the product they aim to purchase from the loan as equity.

The SME Development Finance Corporation is not just a government-based financial institution to lend money or loans, but it will also act as a facilitator to assist local ventures in starting their businesses – be it technical support or other required assistance.

The SDFC currently has four financial products titled Harumudha, Dhan’duveri Nafa, Viyafaari Ehee and Rashu Fathuru aimed majorly in tourism, agriculture and fisheries, businesses related to productivity as well as information communication technology.

In their website, SDFC notes the customer base may include anyone with an already registered SME venture or anyone wishing to start their own venture.

The existing four different loan schemes are subject to an interest rate between 6 to 9.5% with a settlement period of 7 years.

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