SME Digital Opens MVR10 Million Guesthouse Financing at 7.5%

SME Digital has opened applications for guesthouse financing of up to MVR10 million at an annual profit rate of 7.5 per cent, with repayments made in US dollars.

The facility, announced on 7 October, offers terms of up to 15 years, including a grace period of up to 18 months. It covers new guesthouse development as well as investment in existing businesses.

SME Digital says the repayment arrangement is intended to match financing obligations with the dollar income earned by tourism businesses. Chief executive Badhurudheen Hassan said the facility was designed for guesthouses receiving revenue in US dollars and seeking to develop or expand their operations.

Terms and Eligibility

The lender’s product details describe the facility as secured financing and list a 20 per cent equity requirement.

Registered guesthouse businesses must have operated for at least 12 months. The product also provides for start-up guesthouse businesses with active business activities generating revenue in US dollars. Both the business and its shareholders must have maintained a satisfactory credit history over the preceding 12 months.

The financing can fund construction, expansion, maintenance and renovation. The announcement also lists local-tourism support services, working capital and technological innovation among the permitted purposes.

The product FAQ states that financing is disbursed to the customer’s bank account in US dollars and immediately converted to rufiyaa for use. Start-ups must be able to make repayments in dollars after the grace period. The MVR10 million figure is the lender’s published maximum facility amount.

Documentation for Applicants

SME Digital publishes separate document lists for existing businesses and start-ups. These include identity and business-registration records, relevant permits, tax documentation, income evidence, a business plan and financial projections.

For an operating business, the listed records include financial statements, current management accounts, bank statements and booking information. Project documents include quotations, a breakdown of construction costs where applicable, approved layouts and the relevant construction permit.

The published checklist requires audited financial statements where business revenue exceeds MVR10 million, with the audit carried out by an approved auditor from the Institute of Chartered Accountants of the Maldives.

The lender also requests documents supporting the proposed collateral. It states that additional records may be required according to the project.

Applications are available through the SME Portal, linked from the lender’s website.

Financing Services Extend to the Atolls

The launch follows SME Digital’s latest round of business engagement in Kulhudhuffushi. In a separate 6 October update, the lender said its team had held sessions there from 27 September to 5 October.

Staff met people planning new businesses and owners seeking finance for existing operations, providing information about applications. The team also met the city council and Women’s Development Committee, and operated an information stall at the Bodu Thiladhunmathi Bodu Baazaru and Island Carnival.

SME Digital said it had undertaken 14 business-engagement trips to the atolls. Its customer-service line is 1613, with published service hours of 8.30am to 4pm from Sunday to Thursday, excluding public holidays.