The Government has brought the "Dhanduveri Nafaa" financing scheme under an Islamic financing framework as part of efforts to provide Shariah-compliant financial assistance to farmers and support the development of the agricultural sector.

The scheme, implemented jointly by the Ministry of Fisheries, Agriculture and Ocean Resources and SME Digital, is among the financing facilities being transitioned as SME Digital works to align all of its products with Islamic principles.

The Dhanduveri Nafaa scheme provides financial assistance to individuals and businesses engaged in agriculture, with unsecured financing of up to MVR 500,000 and financing of up to MVR 1 million available with collateral.

The scheme offers a grace period of between 10 and 12 months before repayments begin and has been regarded as one of the most affordable financing options available to farmers in the Maldives.

Its main objective is to promote modern agricultural practices through the use of technology. Financing is available for initiatives such as urban agriculture, protected agriculture, terrace and vertical farming, poultry farming, and businesses involved in adding value to agricultural products.

SME Digital stated that the scheme plays an important role in the Government's efforts to strengthen the agriculture sector by improving farmers' access to financing, reducing financial burdens and encouraging the adoption of modern farming technologies.