Under the government’s Covid-19 Recovery Loan Scheme introduced in light of the ongoing Covid-19 pandemic, the Ministry of Finance has disbursed loans to 2,114 individuals.

The finance ministry’s latest statistics revealed that by April 1, the total disbursed as loans under the government’s Covid-19 Recovery Loan Scheme had reached MVR 361.3 million.

The latest statistics go on to reveal that 661 self-employed individuals and 1,453 businesses received loans. The latter received a total of MVR 341.5 million, while the remaining MVR 19.8 million was for freelancers.

The ministry received a total of 2,033 applications from businesses, out of which 1,519 were approved and 1,519 applications were sanctioned. 79 business applications were rejected.

Out of the 2,053 applications received from self-employed individuals, 685 applications were approved for MVR 20.5 million, 685 sanctioned at MVR 20.5 million and 626 applications were rejected.

As per the finance ministry, MVR 360.5 million out of the MVR 574.7 million requested through businesses have been approved

Statistics go on to indicate that MVR 201 million was approved for 845 applications from the commercial sector by Thursday. The second highest amount approved in sector was to the construction sector where 204 applicants have been approved for MVR 59.4 million. Further, the tourism sector saw 320 applications out of which 238 applicants were approved for MVR 55.3 million.

By Thursday, the ministry received loan applications from 947 female applicants out of which 576 were approved for a total of MVR 117.4 million. Out of this, 445 are businesses and 131 self employed applicants. The latter is approved to received MVR 3.9 million whereas the remaining MVR 113.5 million will go to businesses led by females.

The Covid-19 Recovery Loan Scheme is specialized for freelancers with the annual turnover less that MVR 10 million during 2019, who are facing hindrances and difficulties to run required operations due to the pandemic.

Eligible individuals may apply for loans up to MVR 30,000 at six percent interest per annum for a three-year period. A grace period of up to six months is offered during which no interest is charged, and no payment of principal or interest is required.

The finance ministry partnered with the SME Development and Finance Corporation (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, which is implemented through the “Viyafaari Ehee” loan initiative by SDFC.