Maldivian national bank – Bank of Maldives has introduced a disaster relief loan scheme in collaboration with the government.
The contract for the disaster relief loan was signed by BML and the Maldivian government in a ceremony held at BML headquarters this Sunday morning.
The contract was signed by Minister of Defense Adam Shareef Umar, and Director of Retail Banking at BML, Mohamed Shareef.
Speaking during the ceremony, Adam Shareef Umar said that the government made the decision to introduce the loan as they had noticed the assistance provided by the government was not enough to citizens who suffer loss from disasters.
“This contract with BML is a result of the work done by National Disaster Management Center due to the initiative taken by President,” said Adam Shareef Umar.
The current procedure is that the National Disaster Management Center first assesses the damage from disasters, and the government then covers approximately 40 percent of the cost.
Those who are provided financial assistance by National Disaster Management Center are eligible for the disaster relief loan – regardless of whether the disaster in natural or manmade.
“The loan will be given to those provided assistance by NDMC for the loss,” said Adam Shareef Umar.
Deputy Minister of Defense Fathimath Thasneem – who is in charge of running the NDMC – said that anyone who had been provided assistance by the center for a disaster – whether it be a fire or flooding – were eligible for the loan.
“Those who have been provided assistance by the government for an incident that had been defined and assessed by the government as a disaster are eligible to apply for the loan. The government’s decision to provide assistance, rather than the disaster itself will be considered for this,” said Thasneem.
She said that the loan would not cover losses to businesses from disasters.
“The government provides assistance to ordinary civilians in the case of a disaster. The assistance is for damage to household property. Only civilians are eligible for the loan,” said Thasneem.
Director of Retail Banking at BML, Mohamed Shareef, said that the loan would be issued at the base rate of the bank at the time.
He said that the lowest interest rate being offered by BML at the moment was 9 percent. And that the loan interest rate will go down if the base interest rate goes down.
BML Disaster Relief Loan:
• Given to help re-start life after a disaster.
• Only eligible if government has identified the damage is a result of a disaster, and has provided assistance.
• Loan will cover 60 percent of the loss.
• Loan amount can reach up to MVR 510,000.
• One-year grace period.
• Interest will be set at BML base rate.
• Loan can be repaid within 15 years.