COVID-19 relief loan: Freelancers eligible for no more than MVR 18,000

SME Development Finance Corporation (SDFC), on Wednesday, rolled out COVID-19 Viyafaari Ehee, a loan product designed to aid SMEs and self-employed individuals facing cashflow constraints due to the coronavirus pandemic.

The loan product is part of the economic recovery package announced by the Finance Ministry, and according to SDFC, people who work as freelancers or are self-employed are eligible for no more than MVR 18,000.

Only those who have worked for six of the last 12 months, and earned a verifiable income during that period are eligible for the loan.

Neither equity nor security is required to apply for the loan, and the interest rate is six percent per annum, while the repayment period is three years (excluding a six-month grace period).

A MVR 18,000 loan at a six percent interest rate, if repaid within the maximum 36 months, amounts to a monthly repayment of MVR 547.59, and a cumulative interest of MVR 1,713.42. The total repayment amount, including the principle amount and the interest, amounts to MVR 19,713.42.

Meanwhile, SMEs are eligible for loans of up to MVR 500,000.

Only businesses which have earned an annual sales turnover which below MVR 10 million in 2019 are eligible for the loan.

There’s also an additional requirement that the business must not have laid off any local employees due to COVID-19 outbreak and during the funding period.

Those who wish to apply for the loan are required to login to SDFC’s online portal.

The national bank, Bank of Maldives (BML) too, has opened application for COVID-19 relief loans under the government’s economic relief package.

The parties eligible for BML’s loan product are resorts and businesses which have earned an annual sales turnover which exceeds beyond MVR 10 million the previous year.