Under an MoU signed between Bank of Maldives and the Fisheries Ministry to facilitate financial assistance for fishermen, those registered in the national fishermen's registry can apply for loans starting today, according to the Bank of Maldives (BML).
With this MoU signed on April 28, the Fisheries Minister has previously stated that the difficulties fishermen faced in obtaining loans will be eliminated.
With the changes brought under this agreement, fishermen will have easy access to credit facilities based on their income for various purposes such as personal financing, credit cards, and purchasing, building, and repairing homes. Under this arrangement, eligible fishermen can take up to MVR 300,000 in personal financing without collateral and without equity (self-funded money). BML has stated that personal financing and easy loans can be applied for from anywhere via BML Internet Banking or the Mobile Banking App.
BML's CEO and Managing Director Mohamed Shareef noted that the bank has also made arrangements to ease the repayment of loans taken by fishermen. The most important change is determining the monthly loan repayment amount based on the income received by the fishermen.
Loans available for fishermen to apply for:
- Personal Financing Loan
This is a loan that can be taken for personal use. Ranging from MVR 10,000 up to MVR 300,000, this loan does not require collateral. And no equity needs to be paid. Issued at an interest rate of 15%, a period of 5 years will be given to repay this loan. And the loan repayment amount will be determined based on the proportion of income fishermen receive during the year. This is the first time loans are being issued with a flexible repayment amount determined in this manner.
In determining the loan amount issued to fishermen, BML will look at the income received by fishermen over a one-year period. Personal financing loans can also be applied for via the BML Mobile Application and BML Internet Banking.
Home Purchase Finance
This is a loan issued to purchase a flat apartment, row house, single unit or condominium apartment, garage/parking space, and land. This loan is issued at the lowest lease rate in the Maldives. The lease rate is 9%. For this loan, an amount between 10% and 20% must be paid as equity. A period of 25 years will be given to repay the loan. And loan repayment will have to start after 2 years.
Home Build Finance
This is a loan issued for building and repairing homes or completing the work of homes that have started construction. This loan can also be taken up to MVR 2 million. And 25% of the loan must be kept as equity for this loan. While a period of 15 years is given to repay this loan, a period of 1 year will be given to start repaying the loan. Only the place being built needs to be mortgaged for this loan.
Real Estate Finance
This is a loan issued for very large projects. Issued up to MVR 45 million, the minimum amount that must be kept as equity in this loan is 20% of the loan. This loan is also a loan that must be repaid within 20 years. A period of 1 year will be given to start repaying the loan.
Under this MoU signed between Bank of Maldives and the Fisheries Ministry to facilitate financial assistance for fishermen, fishermen can also take credit cards and Islamic credit cards. And fishermen can also take the BML Kiyavaa Loan for their children and family members to attain higher education.
Establishing fishing as an occupation, fitting it into the banking credit rating, and making arrangements to receive additional services such as obtaining loans from financial institutions is a promise made to fishermen by President Dr. Mohamed Muizzu during the presidential election.
