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SDFC extends moratorium application deadline

Mariyam Malsa
29 September 2020, MVT 20:05
SME Development Finance Corporation (SDFC) in the capital city of Male'. PHOTO: HUSSAIN WAHEED/MIHAARU
Mariyam Malsa
29 September 2020, MVT 20:05

SME Development Finance Corporation (SDFC), on Tuesday, extended the application deadline on the moratorium for loans until October 8.

According to SDFC, the extension was granted in response to difficulties faced by borrowers in applying for the moratorium before the expiry of the initial deadline on September 25.

The aforementioned extension will only be applicable to loans that SDFC has already issued, and will not apply to any loans taken under the relief scheme.

In order to minimize the negative financial impacts amid the ongoing COVID-19 pandemic, SDFC has extended the repayment period for loans until the end of 2020.

In addition to SDFC, the Housing Development Finance Corporation (HDFC) also extended its loan repayment period by six months in March. The Bank of Maldives (BML) announced a similar moratorium along with a 20 percent discount on repayment amount.

In April, SDFC commenced issuing loans to small and medium enterprises (SMEs) with annual revenues below MVR 10 million under its 'Economic Recovery Plan'. The loans are issued at an interest rate of six percent and must be settled within three years and carry a six-month grace period to begin repaying the loaned amount.

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