Ministry of Finance has revealed Bank of Maldives (BML) has disbursed USD 41.7 million for businesses under the COVID-19 Recovery Loan Scheme.
As per the statistics of the finance ministry, BML provided loans amounting to USD 41.7 million for 371 businesses as of September 17. The statistics show that 566 businesses applied for the loans, of which 405 applications have been approved. A further 9 applications are under review.
The government introduced an economic relief package to prevent local businesses from going bankrupt amid the COVID-19 pandemic. While loans for large businesses are issued by the BML, loans for small and medium enterprises (SMEs) and freelance workers are issued by SME Finance Development Corporation (SDFC).
BML issues loans up to USD 500,000 for resort businesses and up to USD 65,000 for other businesses. Businesses which generated an income above USD 650,000 in 2019 are eligible for BML’s loans.
BML issues the loans at an interest rate of 6%, with a grace period of up to 6 months and a repayment period of up to 3 years.