The SME Development Finance Corporation (SDFC) has launched a new soft loan scheme to support small and medium enterprises (SMEs) engaged in island tourism, inviting applications through its SME portal.

Named “Thijarah Rashu Fathuru”, the initiative is based on Islamic Shariah principles and aims to provide financial assistance for a wide range of tourism-related activities. Eligible projects include the construction and renovation of guesthouses, the development of tourist facilities such as restaurants, cafés, and water sports centres, as well as the use of technology to expand tourism businesses.

Under the scheme, loans of up to MVR 5 million will be offered, with a repayment grace period of 18 months and a maximum repayment term of 10 years. The financing rate has been set at 9.5 per cent annually, while repayment obligations apply only if the loan amount or total exposure exceeds MVR 700,000.

SDFC, established on 18 March 2019 to promote the growth of SMEs, currently provides loans across eight sectors, including tourism, commerce, fishing, transportation, and manufacturing. Through SME Bank, additional financing is also extended to construction, information technology, and agriculture ventures.

The Government has announced plans to sell its stake in SDFC to the Bank of Maldives (BML). Officials said the transfer is intended to leverage BML’s strong financial position and expertise in digital banking to accelerate the digital transformation of SME financing in the country.