A total of MVR 306.7 million has been issued under the government’s Recovery Loan Scheme for Small and Medium Enterprises (SMEs) due to the global Covid-19 pandemic.
The amount was disbursed to a total of 1,760 businesses. This includes MVR 291.2 million to 1,239 businesses and MVR 15.5 million to self-employed individuals.
SME Development Finance Corporation (SDFC) said that 462 of the applications approved were female entrepreneurs; a total of MVR 98.4 million.
Ministry of Finance partnered with SDFC to administer the Covid-19 Recovery Scheme targeted towards SMEs and self-employed and freelance workers, as part of the government’s Economic Relief Package.
The scheme is being implemented via the “Viyafaari Ehee” loan introduced by SDFC and is targeted towards SMEs facing difficulties in meeting their operational requirements in the face of the Covid-19 crisis.
Only SMEs with an annual turnover of less than MVR 10 million in 2019 are eligible for the loan.
Eligible SMEs may apply for loans up to 10 percent of its annual sales turnover for the past year -capped up to MVR 500,000- at six percent interest per annum for a three-year period, said the ministry.
Further, it has been revealed that the repayment period excludes the grace period up to six months in which no interest is charged. Funding is liable on SMEs that do not terminate local employees due to the Covid-19 outbreak, as well as during the funding period.