Loans disbursed through the SME Development and Finance Corporation (SDFC) have risen to MVR 300 million, under the government’s Recovery Loan Scheme for Small and Medium Enterprises introduced due to the ongoing Covid-19 pandemic.

Latest statistics publicized by the Ministry of Finance reveal that the loans were issued to a total of 1,815 business and self-employed applicants, by October 15.

The statistics publicized by the ministry note that a total of 1,254 businesses and 561 self-employed individuals received loans.

A total of 1,889 businesses applied for a total of MVR 520 million out of which SDFC approved 1,412 applications, totaling MVR 335.4 million.

By October 15, the total sanctioned for 1,368 businesses reach MVR 325.1 million. 65 business applications were rejected.

Statistics go on to reveal that SDFC approved 621 applications out of the 1,856 applications received through self-employed or freelance workers.

They rejected 544 applications by freelancers and sanctioned 610 applications at MVR 18.7 million. A total of MVR 16.8 million was disbursed to self-employed applicants.

The ministry’s statistics revealed that a total of 532 female applicants had been approved for MVR 110.3 million in loans out of the 861 female applicants. Out of this, loans were approved for 419 businesses and 113 self-employed women. MVR 3.4 million was approved for freelancers and MVR 106.9 million for businesses.

The greatest number of loan applications approved by SDFC by sector, were for the commercial sector, at 772 totaling MVR 184.4 million.

This is followed by the self-employed sector where 621 applications were approved out of the 1,856 applications received, totaling MVR 18.5 million.

A total of MVR 52.7 million was approved for 229 applicants from the tourism sector, where 308 applications were received.

SDFC received loan application from the construction sector totaling 260 out of which 191 were approved for MVR 54.6 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.

Further, statistics go on to reveal that the country’s national bank, Bank of Maldives (BML) had disbursed a total of MVR 544.8 million to 384 businesses as well.

The ministry’s latest statistics reveal that total disbursements made under the Economic Relief Package stood at MVR 1,147 billion by October 15.

This was a 0.4 percent increase from the previous week.