The financing limit for installing refrigerated seawater (RSW) systems on fishing vessels has been increased to MVR 4 million, with no collateral required.

The Ministry of Fisheries announced the change on the Sarukaaru website today, saying the revised facility would provide fishermen with greater access to financing.

The loan scheme is a joint initiative of the Fisheries Ministry, Finance Ministry, Lives and Livelihood Fund (LLF) and Islamic Development Bank (IsDB).

The facility previously covered the installation of RSW systems, generators and solar panels on fishing vessels. Under the revised scheme, fishermen can also obtain financing to install new engines or replace existing ones.

The unsecured loan offers up to MVR 4 million at an annual interest rate of 6 percent, with a repayment period of 10 years and a six-month grace period, the ministry said.

The scheme aims to reduce fishermen's expenditure on ice and provide access to modern equipment to preserve the freshness and improve the quality of their catch.