SME Digital has opened applications for financing under the Maldives Islamic Social Financing Initiative (MISFI), marking the first financing scheme introduced by the Bank of Maldives (BML) under the initiative.
SME Digital said the scheme provides Islamic micro-financing of up to USD 6,490. The financing is offered at an annual rate of 2.5 percent, described as the lowest available rate. A repayment period of up to 10 years is provided to ensure business sustainability, including a grace period of up to 12 months. No application or processing fees are charged under the scheme.
The company said Islamic micro-financing is an open financing mechanism aimed at individuals who face difficulties in accessing financial assistance through the conventional banking system, as well as new entrepreneurs. SME Digital said the initiative is intended to strengthen the relationship between the public and the financial sector and to remove barriers to accessing financial services.
Speaking on the scheme, SME Digital Chief Executive Officer Badruddin Hassan said Islamic social financing enables the creation of a more inclusive financial system by extending opportunities to individuals who do not qualify for traditional bank financing. He said such opportunities allow beneficiaries to demonstrate their capabilities and support the long-term growth of their businesses.
Badruddin Hassan added that the financing is expected to increase the number of new start-ups and serve as a strong incentive for existing home-based and self-employed small businesses to formalise their operations and continue expanding.
Applications for the financing scheme are now open through the SME Portal on SME Digital’s website.
MISFI is a dedicated fund established by the Maldives Monetary Authority, the Bank of Maldives and the Maldives Islamic Bank (MIB). Under the initiative, BML and MIB have pledged commitments of approximately USD 12.97 million and USD 1.95 million, respectively, over the next three years. The Maldives Monetary Authority has also committed approximately USD 1.30 million during the same period. Together, these commitments bring the total pledged funding for MISFI programmes to approximately USD 16.22 million. The Ministry of Social and Family Development has provided assistance in identifying priority social areas for funding this year.
MISFI was inspired by internationally recognised models such as Bank Islam Malaysia’s Sadaqa House, which utilises a range of Islamic social finance instruments, including Sadaqah, Waqf and Islamic crowdfunding, to channel resources towards socially impactful and development-oriented projects. With the introduction of MISFI, the Maldives is advancing towards greater financial inclusion, social equity and sustainable development through Shariah-compliant financial mechanisms.
The MISFI model is built on a transparent and accountable framework that enables participation from individuals and private sector entities in support of initiatives aligned with the National Financial Inclusion Strategy and the broader objectives of Shariah. The initiative aims to ensure that Islamic social financing is directed towards priority development needs in a structured, inclusive and sustainable manner.