The Government will launch the second phase of the Fashaa Madhadhu Loan scheme on June 15, aimed at empowering women in business and fostering a new generation of female entrepreneurs.

The initiative, introduced last year, is a joint effort between the SME Development Finance Corporation (SDFC), the Ministry of Economic Development and Trade, and the Ministry of Social and Family Development.

In a social media announcement, the Ministry of Social and Family Development confirmed that applications will open on June 15.

The Fashaa Madhadhu Loan scheme comprises five phases under a MVR 100 million start-up fund. During the first phase, opened early last year, loans were granted to 60 recipients. A total of MVR 14 million was disbursed across 16 atolls. According to SDFC, MVR 20 million is allocated for each phase of the programme.

Under the scheme, 25 per cent of the loans are reserved for persons with disabilities. Loans are issued at a 6 per cent annual interest rate, with a repayment period of seven years and a grace period of up to 12 months. Eligible applicants may receive financial assistance ranging from MVR 100,000 to MVR 500,000.

The programme is part of President Dr Mohamed Muizzu’s pledge to implement women-focused financial initiatives and address the barriers many female entrepreneurs face, particularly difficulties accessing credit due to irregular income sources.