As part of Bank of Maldives' commitment and support for businesses, the national bank has introduced a new unsecured Working Capital Financing facility to provide businesses with access to finance up to MVR 3 million, to meet short-term funding and cash flow requirements.
The global economy and that of the Maldives is expected to dip significantly due to the current COVID-19 outbreak. The new financing facilities will likely assist local businesses stay afloat during the looming financial crisis.
According to BML, the new Working Capital facility allows businesses to finance up to 20% of the past 3 years' average annual sales, up to a maximum amount of MVR 3 million with a repayment period up to 3 years. The facility can be availed as a Demand Loan or as a credit limit in the form of Overdrafts, Bank Guarantee, Letters of Credit and Trust Receipt Demand Loans, said BML.
The Bank also announced a reduction in interest/profit rates for Business Development Loan, Guest House Loan, Real Estate Loan, and secured Retailers' Loan. These changes are also reflected in the Shari'ah compliant business financing facilities offered by BML Islamic, said the bank.
'The introduction of this unsecured facility, which is a first for this market, is part of our support to remain dedicated to the growth of the business sector in the country. We now have a competetive and comprehensive business product portfolio for out customers, and for the first time, a simple wat to easily access capital to groq, innovate or even to boost shoer term cash flows,' said BML's CEO Tom Sawyer commenting on the new changes.
Mr Sawyer also announced a reduction in equity requird for HOme Construction loans. New Home Construction loans/financing will require 20% of equity versus 30% previously required.