SME Digital Doubles Collateral-Free RSW Financing Limit for Fishing Vessels to MVR 4 Million

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SME Digital has raised the limit on its collateral-free financing for refrigerated seawater (RSW) systems on fishing vessels from MVR 2 million to MVR 4 million, and has opened the scheme to vessel engines for the first time.

The state-owned SME financier, formerly SME Development Finance Corporation (SDFC), announced the change on Thursday, 29 October, in a news release and on X. Under the revised terms, fishermen can borrow up to MVR 4 million without collateral at an annual profit rate of 6%, repaid over up to 10 years, including a six-month grace period. Applications are made through the SME Portal on its website.

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Until now, the scheme covered RSW systems, generator sets and solar panels on fishing vessels. SME Digital said its scope now also includes the installation and replacement of vessel engines.

RSW systems chill the catch in refrigerated seawater on board, so boats need less ice. SME Digital says the scheme aims to cut what fishermen spend on ice and to keep their catch fresh and of higher quality.

According to the release, Fisheries Minister Ahmed Shiyam said one of the biggest challenges for Maldivian fishermen is the high cost of ice and the time it takes to get it. He said onboard RSW systems would reduce their dependence on land-based ice plants and cut the fuel and time spent travelling to collect ice.

"This enhancement presents a significant opportunity for vessel owners and fishermen across the Maldives to modernize their operations and increase their earnings," said Badhurudheen Hassan, SME Digital's chief executive.

SME Digital runs the scheme with the Ministry of Fisheries, Agriculture and Ocean Resources and the Ministry of Finance and Public Enterprises. It is funded by the Islamic Development Bank (IsDB) and the Lives and Livelihoods Fund (LLF).

Step Back

The limit was MVR 2 million in the scheme's third phase. When SME Digital opened applications for that phase on 13 November 2025, its terms offered up to MVR 2 million at the same 6% profit rate, with a grace period of up to six months, repayment over up to 10 years and no collateral or equity requirement. It was still advertising the MVR 2 million ceiling on 8 September.

The third phase targeted 200 fishing vessels. SME Digital said it was structured as project financing, combining instalment sale financing from the IsDB with grants from the LLF. It put the total allocation at US$9.69 million, including US$3.392 million in LLF grants, which give applicants a grant covering 35% of the cost of an RSW system once it is installed. The 29 October release did not say whether the grant applies to financing above MVR 2 million or to engines.

The first phase was launched in 2024 and the second in 2025. When the third phase opened, SME Digital said MVR 44.99 million had been approved for 35 applicants across the first two phases, with disbursements under way. It has not published approval figures for the third phase.

In October 2024 the fisheries ministry said a second round of information sessions for vessel owners had ended in Naifaru, Lhaviyani Atoll, with SDFC staff helping owners start their applications.