Male’, Maldives – Bank of Maldives (BML) has released MVR 555.7 million in loans to large businesses under the government’s Covid-19 recovery scheme.
Publications by the Ministry of Finance revealed that as of the 26th of November, 594 business have applied for loans through BML, of which 417 applications have been approved. Currently, loans have been released to 395 of the approved applicants.
The Ministry’s statistics also revealed that they received 137 incomplete applications and that there were 17 rejected forms, with an additional 23 applications currently being processed.
BML’s website states that “this government scheme allows businesses financially affected by the COVID-19 pandemic to apply for financing. Bank of Maldives will administer the funds to all resorts, as well as any other businesses with over MVR 10 million turnover. This is an unsecured facility provided at 6% interest per annum with a repayment period of 3 years.”
The webpage also noted a grace period of 6 months, during which no interest or principal payments will be made and that eligible resorts can secure loans up to MVR 7.71 million, with non resort businesses allowed upto MVR 1 million in financing.
The eligibility criteria for businesses states that applicants should have been profitable in 2019, and that they must not have any non-performing facilities at any financial institution. Resorts have the same criteria, with an extra criteria of having a positive cash flow forecast for 3 years.
BML, has made multiple efforts to support post Covid recovery efforts, and have recently brought favorable changes to multiple personal loans, and introduced a no mortgage Green Loan, and has offered Covid relief financing to Small to Medium Enterprises (SMEs) through funding from the European Investment Bank (EIB).
They have also donated computer systems to a children’s center and have donated 65 motorized wheelchairs to individuals mobility impairments across the nation in November.