SME Development Finance Corporation (SDFC) has approved loans worth over USD446,000 in the past four years under the agricultural loan scheme Dhanduveri Nafaa.
Ministry of Fisheries, Marine Resources and Agriculture revealed that 25 loans worth USD446,000 were approved in the past four years, which include three agricultural companies that received USD228,000 and individuals that received USD218,000. The statistics show that 10 male farmers received USD209,000 and two female farmers received USD9,700.
The loan scheme is a collaborative effort between SDFC and the fisheries ministry aimed at providing accessible financing to promote investment, innovation, and sector growth in farming and agriculture. Loans disbursed under the scheme are aimed at investments in modern farming technology, poultry and livestock farming, agro-forestry, and plant nurseries as well as related value-added services.
SDFC issues up to USD32,500 for individuals and up to USD130,000 for companies and corporations under the loan scheme. No equity or security is required for loans below USD4,870. The loans are issued at an interest of 6% per annum, with a grace period of up to 12 months and a repayment period of up to 7 years. Companies and corporations that request loans are required to be registered under the ministry and individuals are required to register as small and medium enterprises (SMEs) after their loan is approved.