SME Bank launches microfinance facility of up to MVR 100,000

SME Bank has launched a new microfinance product under the Maldives Islamic Social Finance Initiative (MISFI), offering financing of up to MVR 100,000.

The facility will be available at a rate of 2.5 percent, the bank said. Financing will be provided on affordable, long-term terms, with a repayment period of up to 10 years, including a grace period of up to 12 months.

Applications for the facility will open next month through SME Digital, the bank’s Sharia compliant subsidiary.

The bank said there will be no application or processing fees, and the financing can be used for a range of purposes, including starting or expanding a business.

Speaking at the launch, BML CEO and managing director Mohamed Shareef, said the product was designed to broaden access to finance and support small businesses.

“This is an investment in helping people reach their full potential and in making small businesses sustainable, which will benefit the wider economy,” he said.

According to the bank, the product is aimed at individuals who are unable to access conventional banking services, including start-ups and those facing difficulties in obtaining financing.

The Sharia-compliant facility is intended to strengthen links between individuals and the financial sector while addressing the needs of the community.