Bank of Maldives Plc (BML) is the largest local bank operating in the country. Barely a week ago, they had announced positive changes brought by them to personal and housing loans and financing schemes offered by the Bank. In this regard, Interest Rates and Profit Rates have been decreased on a variety of loans falling under the said categories. The Bank did mention to keep watch as they were preparing announce more changes. However, we did not expect it to be this soon or this big.
The Green Loan Scheme by BML is one available for both personal and business customers in order to finance green technology in achieving sustainable development. This time, BML has introduced an Unsecured Green Loan Up to MVR 500,000 targeted specifically for environment-friendly projects focused on renewable energy.
As per a press release on the subject by the Bank, any eligible customer can receive a loan amount between of MVR 50,000 to MVR 500,000 without a mandatory security mortgage of a property for which an interest rate has been decided at 12%. The loan can be paid back in a span of 5 years. To cater for persons or businesses engaged in larger investments, eligible customers can borrow a loan up to MVR 20 million, but with a security mortgage in force at an interest rate of 10%. This is followed by an equity contribution of 15% and an extended payback period of 20 years.
BML hopes the changes under their Green Loan Scheme encourages more persons and businesses to engage in sustainable projects.