The SME Development Finance Corporation (SDFC) has introduced a new Islamic soft loan scheme, 'Thijarah Rashu Fathuru' aimed at boosting local tourism activities for small and medium enterprises (SMEs).
The announcement comes amid plans for the government to sell its stake in the corporation to the Bank of Maldives (BML), a move intended to enhance the digital transformation of MSME banking in the country.
SDFC confirmed that the loan is now available for application through its SME portal. The scheme is designed to finance a wide range of tourism-related businesses, with a maximum loan amount of up to USD 324,254.
The financing is available for the construction, renovation, or development of guesthouses while it can also be used to launch or expand tourism activities such as restaurants, cafes, and water sports, or to incorporate technology into business operations.
The loan offers a repayment period of up to 10 years, with a grace period of 18 months. With an annual financing rate of 9.5 percent, a mortgage will be required for loan amounts or total exposures exceeding USD 45,396.
The scheme operates under Islamic Shariah principles, a feature that SDFC and future owner BML have emphasised.
Established on 18 March 2019, SDFC was founded to provide essential financing for small and medium enterprises across various key sectors. Since its inception, the institution—also known as SME Bank—has issued loans for businesses in tourism, commerce, fisheries, transportation, manufacturing, construction, information technology, and agriculture.
The corporation's ownership is now set to shift, with the government deciding to sell its stake to BML. The strategic sale, approved by the Cabinet after reviewing a proposal from the Ministry of Finance and Planning, is intended to leverage BML's strong financial footing and expanding digital banking expertise.
Upon acquiring SDFC, BML has committed to several key initiatives to ensure a seamless transition and enhanced service delivery for MSMEs.
BML has pledged to issue USD 32.43 million, in local currency in loans in the first year after the acquisition, with a target of USD 123.24 million over five years along with Sharia-compliant financing, digital banking systems and stable interest rates.
The transition is expected to further strengthen financial capabilities for MSMEs and extend digital financing services across the country through BML's extensive network.