On Sunday, SME Development Finance Corporation (SDFC) revealed that they had issued a total of MVR 800 million as loans to 2510 individuals in the span of last year, despite the economic setbacks brought forth by the ongoing global coronavirus pandemic.
According to SDFC, during the lockdown period, under the government’s economic recovery plan a total of MVR 381 million was issued to 2,205 private businesses and SMEs and freelancers to assist them overcome their financial troubles. Post the lockdown period, the corporation had also granted a total MVR 420 million to 305 businesses of which were mainly small and medium enterprises operating in the tourism and commercial industry.
These loans were issued at an interest rate of six percent and must be settled within three years. It carries a six-month grace period to begin repaying the loaned amount.
SDFC notes that 33 percent of the loans issued by the corporation were received by youth and women.
SDFC was established as a specialized financial institution providing financial products and ancillary services to MSMEs and entrepreneurial start-ups with the primary purpose of easing access to finance for MSMEs.