SDFC finding solution regarding loan payment difficulties

As part of the SME Development Finance Corporation's (SDFC) efforts to change their loan portfolio to a Shariah-Compliant Financing scheme, they have decided to convert their granted loans into shariah-compliant facilities and provide concessions. 

The SDFC has said today while speaking on shariah-compliant facilities, that they will prioritize finding a solution for those who have difficulties in paying off their loans whatever their reasons may be. 

The SDFC went on to say that repayment extension concessions will also be included under Islamic refinancing. This will facilitate facility regularization in an easier manner for customers under shariah-compliant facilities with these changes, as was said by the bank.

As per the SDFC, the bank will first utilize diminishing musharakah contracts under the shariah-compliant facilities.

The bank said that Al Wakala Bil Istithmar and Tawarruq Islamic banking contracts will be introduced in the coming future after looking at how the arrangements pan out.

While SDFC begins a new chapter as a BML shariah-compliant digital subsidiary, this change is an important step in bringing about innovative solutions to the SME sector, along with increasing financial participation, as was said by SDFC.

SDFC CEO and Managing Director Badhurudheen Hassan has stated that with these changes, their customers will see concessions in paying back their loans.

"With the most notable change in SDFC's history, we will continue to run this bank as a BML shariah-compliant digital subsidiary. With this step, our customers will see concessions in paying back their loans, along with Shariah regulation facilitating the opportunity to put these things back on track," as was said by the SDFC CEO.

"Our aim is to bring innovation through technology and providing well-rounded and accessible solutions to small businesses."

The bank stated that with this change, SDFC has become a leading contributor in providing small and medium businesses with banking services that will bring about a digital transformation.