The Ministry of Finance has issued a total of MVR 109.8 million as loans through the SME Development and Finance Corporation (SDFC) for applications made by women in businesses as well as self-employment, by October 1.

Under the government’s Recovery Loan Scheme for Small and Medium Enterprises (SMEs) due to the global Covid-19 crisis, SDFC has issued a total of MVR 298.9 million in loans for both businesses and self-employed individuals by October 1.

Latest statistics publicized by the ministry note that a total of 1,807 received loans.

A total of 1,836 businesses applied for a total of MVR 504.1 million out of which SDFC approved 1,373 applications, totaling MVR 325.5 million. By October 1, the total disbursed for 1,250 businesses reach MVR 282.2 million.

In addition, 63 applications were rejected from businesses and 1,358 were approved, with the total reaching MVR 323.3 million.

Statistics go on to reveal that SDFC approved 604 applications out of the 1,768 applications received through self-employed or freelance workers. They rejected 528 applications by freelancers and sanctioned 605 applications at MVR 18.5 million.

Out of the 3,604 loan applications received in total for both businesses and freelancers, SDFC approved MVR 343.6 to 1,977 applicants by the end of September.

The ministry’s statistics revealed that a total of 524 female applicants had been approved for MVR 109.8 in loans out of the 839 female applicants. Out of this, loans were approved for 414 applicants out of the 528 applications, at MVR 106.5 and 110 self-employed applicants were approved for MVR 3.3 million.

The greatest number of loan applications approved by SDFC by sector, were for the the commercial sector, at 747 totaling MVR 177.7 million.

This is followed by the construction sector where 186 applications were approved out of the 255 applications received, totaling MVR 52.7 million.

A total of MVR 51.9 million was approved for 227 applicants from the tourism sector, where 307 applications were received.

SDFC received loan application from the transport sector totaling 100 out of which 74 were approved for MVR 19.2 million.

Finance 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.