Under the government’s Recovery Loan Scheme for Small and Medium Enterprises (SMEs) due to the global Covid-19 crisis, the Ministry of Finance has issued a total of MVR 263.3 million as loans through the SME Development and Finance Corporation (SDFC).

According to the ministry’s latest statistics, the total amount disbursed to both business and self-employed applicants through SDFC by August 29, sits at 263.3 million, for a total of 1,600 applications.

A total of 1,701 businesses applied for a total of MVR 474.3 million out of which SDFC approved 1,284 applications, totaling MVR 303.8 million.

The total disbursed for 1,122 businesses reach MVR 248.9 million by August 29.

Further, 59 applications were rejected from businesses and 1,264 were sanctioned.

Statistics go on to reveal that SDFC approved 543 applications out of the 1,542 applications received through self-employed or freelance workers.

Out of the over 1,000 applications received from freelancers, SDFC rejected 449 applications and sanctioned 542 applications at MVR 16.6 million.

From the loan applications, SDFC disbursed MVR 14.4 to 478 self-employed applicants by August 29.

By sector, the greatest number of loan applications approved by SDFC were for the commercial sector, at 697 totaling MVR 165.5 million.

The commercial sector is followed by self-employed sector where 543 applications were approved out of the 1,542 applications received, totaling MVR 16.2 million.

SDFC received loan application from the tourism sector totalling 298 out of which 222 were approved for MVR 51.2 million.

The ministry’s statistics also revealed that a total of 480 female applicants had been approved for MVR 102.9 in loans out of the 736 female applicants.

The ministry 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.