SDFC extends moratorium period

Inauguration ceremony of SDFC. (Photo/President's Office)

SME Development Finance Corporation (SDFC) has extended the moratorium for loan repayments through the facility. 

The period for the moratorium was set to expire on September 25. Now, the SDFC has extended the date for the moratorium to October 8, due to different reasonings and issues that resulted in the lack of applications for moratorium extension by customers. 

The extension is to be applied through an online portal of the SDFC. 

Due to the economic impact of COVID-19, a number of financial institutions in the Maldives including the SDFC have already announced deferrals for loan repayments until the end of the year. SDFC had also reduced the interest rate of the loan repayments during this period to four percent.

The corporation issues loans for SME businesses in five sectors. They include fishing, agriculture, local tourism, and information technology.

MVR 2 million is provided as loans for startup businesses while the repayment period is set for 18 months with a grace period of 10 years.