MVR 60 million loan scheme announced for start-ups and SMEs

Ministry of Economic Development has announced plans to issue loans up to MVR 60 million for start-ups and small and medium sized enterprises (SMEs), under the Sharia Compliance Scheme of the Islamic Development Bank (ADB).

Economic Development Minister Mohamed Saeed told Sun Online that the interest-free loan scheme would be introduced in March.

Up to MVR 1 million will be issued per business and the loan does not require any collateral, he said.

The loan will be issued to businesses in four categories, which are wholesale and retail trade, agriculture, travel, and guest-house development.

Priority will be given to start-ups and SMEs, but all businesses are invited to apply.

The government has also recently introduced a loan scheme called Get Set, aimed at young entrepreneurs. Also, Ministry of Fisheries and Agriculture has announced several loan schemes to develop the fisheries sector.