The Government has officially rolled out a new financing product aimed at accelerating the expansion of Micro, Small and Medium Enterprises (MSMEs) across the Maldives, as part of broader efforts to strengthen private sector growth, improve business resilience, and encourage investment beyond traditional income streams. Branded as the Business Expansion Financing scheme, the facility is structured to help eligible enterprises scale up operations, increase productivity, and compete more effectively by providing targeted funding for expansion activities that can generate sustained long-term value for businesses and the wider economy.
According to SME Digital, the Business Expansion Financing scheme is designed to support business growth through key areas such as new asset purchases and business diversification, enabling entrepreneurs to build additional revenue streams and reduce vulnerability to market fluctuations. The financing can also be used for infrastructural investments, including the development of new business outlets, which is expected to enhance service access, strengthen local supply chains, and contribute to job creation. The product reflects a growth-oriented approach that supports businesses at a practical level helping them invest in the tools, facilities, and capacity needed to expand in a planned and sustainable way.
In outlining the scheme’s accessibility features, SME Digital stated that it offers collateral-free loans of up to MVR 1,000,000, supporting smaller businesses that may have viable expansion plans but limited assets to pledge as security. For larger-scale projects, businesses may access financing exceeding MVR 5,000,000 under the scheme, subject to eligibility, allowing established enterprises to undertake more ambitious expansion, diversification, and infrastructure development. This dual range is expected to serve a broad segment of the MSME community—from growth-stage entrepreneurs seeking to expand capacity to mature businesses pursuing new markets and product lines.
To further reduce early-stage expansion pressure, the repayment period has been set at up to 10 years, with a grace period of one year, providing businesses with time to implement expansion plans and begin generating returns before full repayment obligations take effect. SME Digital noted that this structure is intended to ease financial strain during the initial phase of business growth, when investments are being deployed, operations are being scaled, and new outlets or revenue streams are being established.
SME Digital Chief Executive Officer Badruddeen Hassan stated that the financing product is intended to help businesses progress to the next stage of growth while strengthening their long-term sustainability. With applications now open, entrepreneurs and business operators can submit requests through the dedicated online portal available on the SME Digital website, as the country advances initiatives that encourage innovation, diversification, and stronger MSME participation in national development.
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