BML introduces loan scheme for retails shops without collateral

Bank of Maldives (BML) has introduced a loan scheme of MVR 500,000 that does not require collateral.

Speaking at the ceremony introducing the loan scheme, the CEO and Managing Director of BML, Andrew Healy said that the loan has been designed so that it’s easy for businessmen to get them. And so the loan would be approved in ten working days.

“This loan would help develop small and mid-level businesses.” Mr. Healy said.

The bank said that businesses that have average MVR 50,000 worth of business per month are eligible for the loan. BML says that those businesses can apply for a loan of five times their average monthly. The interest rate for the MVR 500,000 loan is 12 percent. The business also must have their goods insured and that insurance can be arranged through BML.

The bank says that retail businesses can apply for loans higher than MVR 500,000 but that would require collateral.

BML is also offering overdrafts instead of loans. If a business is getting an overdraft, that amount has to be paid back within the year.

A large number of retail businesses took part in the loan launching ceremony tonight. BML says that applications can be submitted starting tomorrow.