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Interest rate slashed for SME loan scheme

Fathmath Shaahunaz
09 September 2016, MVT 09:59
Woman making a purchase at the local market in capital Male. FILE PHOTO: NISHAN ALI/MIHAARU
Fathmath Shaahunaz
09 September 2016, MVT 09:59

Small and Medium Enterprises (SME) Loan Scheme’s interest rate will be slashed and made available after the upcoming Eid holidays, government announced Thursday.

The state budget allocates MVR 50 million for the SME Loan Scheme annually for the progress of small and medium businesses. The scheme mainly targets the advancement of local productions and its enterprises.

The Maldives government signed a contract awarding the management of the SME Loan Scheme to Bank of Maldives Ltd (BML) on Thursday. The state was represented by finance minister Ahmed Anwar while CEO Andrew Healy signed on behalf of BML.

Speaking at the ceremony, economic minister Mohamed Saeed disclosed that the interest rate of the loan scheme will be lowered from nine to seven percent. The loan will be made available to applicants after the Eid holidays.

“This is also turning out to be a great Eid gift for those that qualified for the loan,” said the minister.

Government offices will re-open on September 18 after the Eid holidays.

The economic ministry had earlier said that 447 entities had applied for the loan scheme. Applicants that qualified for the loan have been notified after technical evaluations.

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