The Bank of Maldives on Monday, 09 March 2020, has introduced a new unsecured Working Capital Finance facility to "provide businesses with access to finance up to MVR 3 million."
National bank of Maldives, in their newest effort in its commitment and support for businesses, launched the new finance facility to meet short-term funding and cash flow requirements for local ventures.
As per the bank's statement the new Working Capital facility will allow businesses to finance up to 20% of the past 3 years' average annual sales, up to a maximum amount of MVR 3 million and a repayment period up to 3 years as well.
BML further noted in their statement the new facility can be availed as a Demand Loan or as a credit line limit in the form of Overdrafts, Bank Guarantee, Letters of Credit and Trust Receipt Demand Loans.
Furthermore, with the inception of the new product from BML, the bank also announced on slicing in interest/profit rates for Business Development Loan, Guest House Loan, Real Estate Loan and secured Retailers' Loan.
The changes are also reflected in the Shari'ah compliant business financing facilities offered by BML Islamic.
Bank of Maldives' CEO and MD Tim Sawyer, commenting on these changes said "the introduction of this unsecured facility, which is a first for this market, is part of our support to remain dedicated to the growth of the business sector in the country."
"We now have a competitive and comprehensive business product portfolio for our customers, and for the first time, a simple way to easily access capital to grow, innovate or even to boost short term cash flows," Mr Sawyer added.
Speaking at Monday's press conference to launch the new product, Mr Sawyer also announced a reduction in equity required for Home Construction loans.
Under the new changes, new Home Construction loans/financing will require 20% of equity compared to the 30% previously.
