Loans obtained through the SME Development Finance Corporation (SDFC) has been deferred until the end of 2020.
Economic Minister Fayyaz Ismail thanked the SDFC for deferring the loans obtained through the corporation after announcing the deferments.
The Minister said that he hoped bigger banks will also consider the circumstances. Due to constraints of COVID-19 and its economic impacts, SDFC had already deferred loan repayments for six months starting from March onwards. The interest rate for these six months is also reduced to four percent.
Thank you @SDFC_mv for the decision to extend the moratorium on all loans till end of the year for all those who wish to do so. I hope bigger banks will follow suit in this unprecedented situation and bring heart to banking.— Fayyaz Ismail (@faya_i) August 27, 2020
SME banks issue loans in five areas. They are agriculture, fisheries, local tourism, and the innovation industry. Start-up businesses are provided loans MVR two million to be repaid in 10 years with a grace period of 18 months. Small and Medium-sized businesses are also issued loans of MVR 500,000 to be repaid within a period of 10 years with a grace period of one year.
SDFC is also providing loans to businesses as relief payments in relation to COVID-19. It has provided nearly MVR 222.9 million to businesses so far.