MVR 920.8 million issued under Covid-19 recovery schemes

A total of MVR 920.8 million has been issued as loans under the government’s Recovery Loan Schemes introduced due to the ongoing Covid-19 pandemic,

Out of this, MVR 342.3 million was issued through the SME Development and Finance Corporation (SDFC) for Small and Medium Enterprises and self-employed or freelance individuals, to a total of 2,039 individuals. MVR 578.5 million was issued to 411 out of the total 602 businesses that applied, through the economic relief package for large businesses via the national Bank of Maldives (BML).

Latest statistics publicized by the Ministry of Finance reveal that the loans were issued by December 24.

A total of 1,403 businesses and 636 self-employed individuals received loans through SDFC. A total of 703 applications were rejected.

The statistics go on to reveal that 2,033 businesses applied for a total of MVR 574.7 million out of which SDFC approved MVR 358.1 million. 2,053 self-employed individuals also applied for MVR 52.5 million, out of which 685 applications were approved and 624 rejected.

A total of MVR 19 million has been disbursed to self-employed of freelance applicants.

The greatest number of loan applications approved by SDFC by sector, were for the commercial sector, at 842 totaling MVR 199.3 million. This is followed by the self-employed sector where 685 applications were approved out of the 2,053 applications received, totaling MVR 20.5 million.

A total of MVR 54.8 million was approved for 237 applicants from the tourism sector, where 320 applications were received.

SDFC received loan application from the construction sector totaling 297 out of which 203 were approved for MVR 59.2 million.

The ministry’s statistics revealed that a total of 574 female applicants had been approved for MVR 116.4 million in loans out of the 947 female applicants. Out of this, loans were approved for 443 businesses and 131 self-employed women. MVR 3.9 million was approved for freelancers and MVR 112.5 million for businesses.

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.

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.

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 the total disbursements made under the Covid-19 Economic Response scheme sat at MVR 1.47 billion by then.