Government Rolls Out New Financing Scheme to Support MSME Expansion
MSMEs nationwide will benefit from a new government financing product designed to support their growth | Photo: MV+
The government has officially rolled out a new financing product aimed at supporting the expansion of Micro, Small and Medium Enterprises (MSMEs) across the country.
The Business Expansion Financing scheme is designed to provide financial assistance to MSMEs seeking to scale up their operations and pursue growth opportunities. The product focuses on supporting business expansion through new asset purchases and business diversification, enabling enterprises to develop additional revenue streams.
Under the scheme, financing can also be used for infrastructural investment, including the establishment of new business outlets. SME Digital has stated that the product offers collateral-free loans of up to MVR 1,000,000, while businesses may access financing of more than MVR 5,000,000 under the scheme, subject to eligibility.
To improve accessibility, the repayment period has been set at up to 10 years, with a grace period of one year. SME Digital has said the facility is structured to ease financial pressure on businesses during the early stages of expansion.
SME Digital Chief Executive Officer Badruddeen Hassan has stated that the financing product is intended to help businesses progress to the next stage of growth and strengthen their long-term sustainability.
Applications for the Business Expansion Financing scheme are now open and can be submitted through the dedicated online portal available on the SME Digital website.
