Economic Ministry Opens Applications for SME Loans

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Ministry of Economic Development has opened applications for Small and Medium Enterprise (SME) loans.

Economic Ministry’s announcement stated that the ministry will give loans up to MVR 50 million this round for SME loans.

The ministry revealed that priority will be given to women, youth and people with special needs. SME loans will be given for businesses in environmental friendly products, businesses in islands outside the greater Male’ region, and businesses with a majority of women, youth and special needs entrepreneurs.

Businesses are eligible for a maximum of MVR 500,000, while companies, partnerships and corporate societies are eligible for a maximum of MVR 1.5 million.

Economic Ministry has set a ceiling for loan rates for the different categories. As such, tourism and transportation category will be granted 20 percent of the MVR 50 million, while agriculture and fisheries category will be granted MVR 7.5 million, which is 15 percent of the total loan amount.

Corporative societies, service sector and waste management category will be granted MVR 5 million each, respectively, while open categories will receive MVR 2.5 million.

The ministry revealed that if they do not receive enough applications for the SME loan categories, the roll over amount will go to the open category, and the ministry will evaluate the applications in the open category.

Applicants will have a nine-year repayment period for SME loans, with a one-year grace period, according to Economic Ministry. The repayment period for the loans will be decided after considering the loan amount.

SME loan applications are open until Thursday this week.

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