Maldives main bank has launched its first Disaster Relief Loan to provide customers compensation for damages caused by both natural and man-made disasters.
Maldives’ defence minister Adam Shareef stated that Bank of Maldives (BML)’s new service was introduced on request of the government as it has been noted that the standard relief provided by the state is insufficient in most disaster cases.
Speaking at the press conference held at BML’s main office to launch the Disaster Relief Loan, the minister explained that BML’s loan is guaranteed for all entities that have received relief funds from the National Disaster Management Centre (NMDC) or state for such incidents.
Minister Shareef added that Disaster Relief Loan is relatively simple and easy for the public with a repayment period of 15 years and a grace period of one year.
BML’s retail banking manager Mohamed Shareef explained that the state will pay the loan’s equity ratio of 40 percent, while the remaining 60 percent will be covered by the bank. He added that Disaster Relief Loan features the lowest interest rate BML offers with nine percent.
According to Shareef, the loan will be provided following a damage assessment. Clients will receive relief of up to MVR 500,000 under this scheme.