SME Digital has launched two new Shariah-compliant financing products aimed at supporting island-based tourism businesses and encouraging new entrants into the sector.

The facilities, branded as “Guesthouse Financing” and “Guestroom Financing”, are designed to improve access to capital for individuals and small businesses operating in local tourism.

Speaking on the initiative, SME Digital CEO Badhurudheen Hassan said the products are intended to boost tourism development across the atolls while strengthening local economic activity. He said the financing schemes would lower financial barriers for entrepreneurs and promote sustainable expansion of island tourism.

The Guesthouse Financing facility targets the development of new guesthouses with a minimum of six rooms, as well as the upgrading of existing properties. It also covers room expansions, introduction of additional services and adoption of modern technology. Financing of up to MVR 10 million is available under this scheme, with applicants required to contribute at least 20 per cent of the total project cost. The repayment period extends up to 15 years, including an 18-month grace period.

The Guestroom Financing facility is tailored for homestay operators and small-scale rental businesses, in addition to guesthouse owners seeking expansion. Under this product, businesses and individuals may obtain financing of up to MVR 1.5 million. A minimum 20 per cent equity contribution is required, with a repayment period of up to 10 years, including a 12-month grace period.

SME Digital stated that approvals will be assessed based on the applicant’s income sources, including salary, rental income or business earnings, and their repayment capacity.