A total of MVR 337.6 million has been issued in loans for businesses affected by the Covid-19 pandemic, under the government’s Covid-19 Recovery Loan Scheme.

The Ministry of Finance revealed via statistics that a total of MVR 556.7 million was issued through the Bank of Maldives (BML), while MVR 337.6 million was issued through the SME Development and Finance Corporation (SDFC), by December 10.

Statistics reveal that 2,015 individuals have received loans under the Covid-19 Recovery Loan Scheme by December 10.

Out of this, 1,388 were businesses and 627 were self-employed individuals.

2,026 businesses applied for MVR 574.2 million out of which SDFC approved 1,491 applications, for MVR 353.7 million. Out of the 2,047 applications received from freelancers, 672 were approved for a total of MVR 20.1 million.

SDFC rejected a total of 675 applications including 601 self-employed applicants and 74 businesses.

MVR 353.5 million was sanctioned by SDFC for 1,481 businesses, whereas 20.6 million was sanctioned for 673 self-employed applicants.

By December 10, the total sanctioned was at 374.1 million out of the 373.8 million approved by SDFC.

The greatest number of loan applications approved by SDFC by sector, were for the commercial sector, at 825 totaling MVR 196 million. This is followed by the self-employed sector where 672 applications were approved out of the 2,047 applications received, totaling MVR 20.1 million. MVR 54.8 million was approved for 237 applicants from the tourism sector, where 320 applications were received.

Out of the 294 applications received through the construction sector, SDFC approved MVR 58.2 million for 200 applicants.

Further, a total of 567 female applicants had been approved for MVR 116.1 million in loans out of the 942 female applicants. In total, loans were approved for 574 businesses and 368 self-employed women. MVR 112.3 million was approved for businesses and MVR 3.8 million for free-lancers.

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.

The ministry’s latest statistics reveal that total disbursements made under the Economic Relief Package stood at MVR 1,380.6 billion by December 10.