The Government-owned SME Digital has launched a new loan scheme aimed at supporting the growth and expansion of small and medium-sized enterprises across the Maldives.

The new scheme, titled Business Expansion Financing, is designed to address financing challenges faced by existing SMEs by providing access to funds for business development and operational growth. According to SME Digital, the facility is intended to help businesses strengthen productivity, expand into new markets, and increase revenue.

Under the scheme, eligible businesses may obtain financing of up to MVR 1 million without the requirement for collateral, while the total financing available under the scheme can reach up to MVR 5 million. The repayment period has been set at up to 10 years, including a grace period of up to 12 months.

SME Digital stated that the financing may be used for a range of purposes, including the purchase of raw materials, expansion into new business areas, increasing production capacity, and opening new outlets.

Commenting on the launch, SME Digital Chief Executive Officer Badhurudheen Hassan said the facility is expected to support businesses in reaching their next stage of growth, while contributing to economic activity by enabling SMEs to scale their operations.