Under the government’s Recovery Loan Scheme for Small and Medium Enterprises introduced due to the ongoing Covid-19 pandemic, the Ministry of Finance has disbursed MVR 316.7 million as loans through the SME Development and Finance Corporation (SDFC).

Latest statistics publicized by the Ministry of Finance reveal that the loans were issued to a total of 1,955 business and self-employed applicants, by October 27.

The statistics publicized by the ministry note that a total of 1,343 businesses and 612 self-employed individuals received loans.

By October 27, the total sanctioned for 1,416 businesses reach MVR 336.9 million. 68 business applications were rejected.

1,925 businesses applied for a total of MVR 529.7 million out of which SDFC approved 1,449 applications, totaling MVR 343.8 million. 1,909 self-employed individuals also applied for MVR 48 million, out of which 644 applications were approved and 568 rejected.

The ministry also sanctioned 2,051 applications at MVR 355.9 million. A total of MVR 17.8 million was disbursed to self-employed applicants.

The ministry’s statistics revealed that a total of 546 female applicants had been approved for MVR 112.1 million in loans out of the 894 female applicants. Out of this, loans were approved for 428 businesses and 118 self-employed women. MVR 3.5 million was approved for freelancers and MVR 118 million for businesses.

The greatest number of loan applications approved by SDFC by sector, were for the commercial sector, at 796 totaling MVR 189.8 million. This is followed by the self-employed sector where 644 applications were approved out of the 1,909 applications received, totaling MVR 19.2 million.

A total of MVR 53.7 million was approved for 234 applicants from the tourism sector, where 311applications were received.

SDFC received loan application from the construction sector totaling 269 out of which 194 were approved for MVR 56.1 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 551.8 million to 391 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.