BML launches liveaboard financing facility with lowest rate in Maldives

designed to reflectBank of Maldives (BML) announced on Wednesday the launch of Liveaboard Finance, a financing facility built specifically for the Maldives' liveaboard tourism sector. The bank said the facility carries the lowest vessel financing rate available in the country.

The facility covers the purchase, construction, mechanization, or renovation of liveaboard vessels. It also covers related equipment and gear. BML said the product is designed to help operators expand fleets, modernize older vessels, or bring new builds into service.

BML has set the financing rate at 9.5% per annum, according to the press release. The bank's website describes the offer as a rate of "up to 9.50%," which suggests the rate may vary by applicant. The vessel being financed is accepted as collateral. BML said no additional collateral is required.

Financing terms

Financing amounts depend on the price of the vessel and BML's credit assessment of the applicant. Customers must contribute a minimum of 30% equity toward the purchase or project.

Repayment periods extend up to seven years. The bank's website adds that a grace period of up to 12 months is available. Repayments are structured around the liveaboard sector's peak and off-peak seasons. BML said this allows operators to align loan repayments with actual revenue instead of a fixed monthly schedule. Repayments are accepted in US dollars.

Eligibility

According to BML's website, applicants must be Maldivian nationals between 18 and 75 years old. Applicants must also be under 75 by the end of the financing term. The applicant's business must be registered in the Maldives.

Applicants must already hold a BML account with at least 12 months of operating history. They must show sufficient income to cover monthly repayments. Their record on existing credit facilities must be satisfactory.

Applicants in Male' can book an appointment through BML's appointment portal to visit the BML Islamic Financing Center. The bank said appointment slots are available for the next 10 working days at a time.

Bank's comments

Mohamed Shareef, CEO and Managing Director of Bank of Maldives, commented on the launch. He said liveaboards are one of the most distinctive sectors of Maldivian tourism. He said operators deserve a financing partner that understands the seasonal nature of their business.

Shareef said the facility was built around how the liveaboard industry earns and spends. He said the arrangement gives operators confidence to invest in growth. He described the move as part of the bank's broader commitment to sectors that define the Maldivian economy.

Context

BML said the facility would help established operators renovate or expand their fleets. It is also expected to help new entrants build or acquire vessels.

BML has previously provided financing to resorts and guesthouses across the Maldives. The bank described itself as a long-standing financial partner to the Maldivian tourism industry.