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SDFC extends grace period of recovery loans by another six months

13 March 2021, MVT 09:42
SME DEVELOPMENT FINANCE CORPORATION SDFC LAUNCHING EVENT / ECONOMIC MINISTRY /
13 March 2021, MVT 09:42

Ministry of Finance on Wednesday announced the decision to further extend the grace period for recovery loans issued by SME Development Finance Corporation (SDFC) by six months.

As per the ministry, this will provide an additional six months for companies whose grace period had already expired as well. This would bring the total grace period granted to 12 months. In granting this opportunity, they will follow the same standards used by SDFC in evaluating loan applications.

As for companies whose initial grace period did not yet expire, they will be given six more months from the expiration date.

Meanwhile, companies that just applied for the loan got approved will now get 12 months before they have to start repayment.

Finance Ministry stated that within the next 30 days, those who are being granted grace period extension will be informed. Once informed, the company must accept the extension and provide all the documents needed for it within 30 days.

SDFC commenced issuing loans to small and medium enterprises (SMEs) with annual revenues below MVR 10 million under its 'Economic Recovery Plan' in April 2020, following the adverse effects of the ongoing global pandemic.

The loans are issued at an interest rate of six percent and must be settled within three years.

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