SME Digital has opened applications for Islamic Micro Financing, the first product introduced by Bank of Maldives under the Maldives Islamic Social Financing Initiative (MISFI), marking a major step forward in expanding access to Shariah-compliant financing for underserved entrepreneurs across the country. Designed to support inclusive economic participation, the new facility is positioned to help individuals and small enterprises build sustainable livelihoods, strengthen business resilience, and take their next steps toward growth within the formal financial ecosystem.
The Islamic Micro Financing product offers funding of up to MVR 100,000 at a financing rate of 2.5%, described as the lowest rate available in the Maldives. To promote long-term stability for borrowers, the facility includes a financing tenor extendable for up to 10 years, alongside a grace period of up to 12 months to help new and early-stage businesses manage cash flow while establishing operations. The financing also features flexible, customer-friendly terms, including zero application and processing fees, reducing upfront barriers that often prevent entrepreneurs from seeking formal support.
Targeted primarily at individuals and businesses that face challenges accessing traditional bank financing, Islamic Micro Financing is aimed at micro, small, and start-up ventures—particularly those operating informally or from home and looking for a pathway to formalisation. Structured in accordance with Islamic principles, the product is specifically open to individuals who have not previously received financing from any bank or financial institution, widening the opportunity for first-time borrowers to access credible financial services and begin building their financial track record. Through MISFI, the initiative seeks to bridge gaps between underserved communities and the formal financial sector, helping remove obstacles that have historically limited access to essential banking services and business development support.
Commenting on the initiative, SME Digital CEO Badhurudheen Hassan said the goal of Islamic Social Financing is to provide financing opportunities for individuals and businesses who are not eligible through the traditional banking system and to build a more accessible financial system. He noted that expanding access can create pathways for individuals to demonstrate their potential and unlock new growth opportunities, adding that the initiative is expected to encourage the development of new startups and provide a significant boost for informal and home-based micro businesses to formalise, strengthen their operations, and progress sustainably.
Applications for Islamic Micro Financing are now open via the SME Portal on the SME Digital website.
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