Bank of Maldives (BML) has introduced a new financing facility, "Liveaboard Finance", to support the country's safari vessel industry.

BML said the facility will provide financing for the purchase, construction, engine installation and repair of liveaboard vessels. It can also be used to finance onboard equipment and other related facilities.

According to the bank, the financing is designed to help operators expand their fleets, refurbish and modernize existing vessels, or invest in new liveaboards.

The facility offers an interest rate of 9.5 percent per annum, which BML said is currently the lowest financing rate available for vessels in the Maldives.

Under the scheme, only the financed vessel will be required as collateral, with no additional mortgage needed.

The financing has a repayment period of up to seven years, with repayments structured around the tourism industry's peak and off-peak seasons. BML said the flexible repayment arrangement allows operators to make payments based on vessel income rather than a fixed monthly schedule.

Repayments will be made in US dollars.

BML Chief Executive Officer Mohamed Shareef said liveaboard tourism is one of the Maldives' key tourism segments and that operators require greater access to financing to expand their businesses.

"Our Liveaboard Finance facility has been specifically designed to give operators the opportunity and confidence to invest in growing their businesses. It forms part of our broader efforts to support key sectors of the Maldivian economy," he said.

BML said the financing will improve access to capital for both existing operators seeking to renew or expand their fleets and new entrants looking to establish businesses in the liveaboard sector.