Economic Development Ministry invites proposals for SME Loan Scheme

Ministry of Economic Development has invited interested parties to submit proposals for loans under the Small and Medium-sized Enterprises (SME) Loan Scheme, launched by President Abdulla Yameen last month.

In an announcement yesterday, the ministry said the MVR 50 million loan scheme was designed as advised by the SME Council and is targeted at start-ups and SMEs.

Proposals can be submitted by start-ups and SMEs which are fully owned by Maldivians and registered at the ministry.

The ministry said that priority would be given in the evaluation process to businesses owned by youth aged between 18 and 35 and women.

Priority will also be given to export businesses, environment-friendly businesses, and businesses operating in islands excluding Malé, Hulhumalé, and Vilimalé.

The loan ceiling for sole proprietorships is MVR 500,000, and that for partnerships, companies, and co-operative societies is limited to MVR 1.5 million.

Loans will be issued to businesses in the following areas: tourism, transport, construction, co-operative society, service sector, waste management, and open category.

Bank of Maldives (BML) has been appointed as the fund manager for the loan scheme.

The grace period shall be one year, and the repayment period shall be decided based on the financial statements of the business and will not exceed six years.

The loans carry an annual interest rate of 9 percent.

A collateral is not required, but the business property shall be considered collateral until the loan is fully repaid.

Application forms will be available from Economic Development Ministry from 6 December 2015, and forms will be accepted from 17 January 2015.