Small Development Finance Corporation (SDFC) has started issuing soft loans up to MVR 700,000 to reef fishermen without a mortgage called 'Kandufalhuge Nafaa'.

In a post on X today, the SDFC said the interest rate on the loan given to the fishermen is 5 per cent, the repayment period is 10 years and the loan will have to be repaid after a grace period of six months.

The 'Kandufalhuge Nafaa' loans are issued:

  • to purchase packaging machinery and equipment
  • to purchase fishing equipment installed on a fishing vessel.
  • repair the fishing vessel and make further changes
  • to purchase equipment and equipment to store fish
  • to install an engine on the fishing vessel
  • to repair the fishing vessel and to build or buy a new vessel

The loan is targeted at fishermen, those who pack and supply chilled reef fish products for public sale and supplies to resorts, those who pack reef fish for exports, or produce products of reef fish, and those who produce fish products in the Male' area from the atolls.

SDFC said that in cases where a collateral is required for a loan, vessels can be considered as collateral. If the amount of money is required to be more than MVR. 700,000, then the increase will have to be borne by the borrower.

Fisheries Minister Ahmed Shiyam inaugurated the Kandufalhuge Nafaa loan at a ceremony held in Sh. Komandoo on February 17.