The financing carries an interest rate of 15 per cent, with applications open via internet and mobile banking platforms. Eligibility will be determined based on the applicant’s average monthly income, the bank said earlier.
Beginning May 1, the Bank of Maldives (BML) will commence the issuance of unsecured personal financing up to MVR 300,000 to registered fishermen, the Ministry of Fisheries announced on Wednesday. This initiative aligns with the strategic goals of both BML and the ministry to bolster social business within the crucial fisheries sector.
May 1 is international labour day.
The financing, accessible through BML’s existing personal financing scheme, is specifically targeted towards individuals listed in the National Register of Fishermen. Loan facilities will range from MVR 10,000 to MVR 300,000 and will not require any form of collateral or equity from the applicants.
The financing carries an interest rate of 15 per cent, with applications conveniently available through BML’s online internet and mobile banking platforms. According to the bank, eligibility for the financing will be determined based on the applicant’s average monthly income.
Fisheries Minister Ahmed Shiyam highlighted that a significant 95 percent of active fishermen are already registered and encouraged those not yet listed to complete their registration to benefit from this support. He emphasized that this initiative is a key component of the government’s broader efforts to retain individuals within the fishing sector.
More BML financial products
Minister Shiyam further stated that President Dr Mohamed Muizzu’s administration is committed to ensuring that fishing remains a sustainable and viable livelihood for Maldivians. Schemes such as this unsecured financing are deemed essential for the continued prosperity of the industry, which accounts for the single largest employment sector in the Maldives.
Upon approval of the financing, fishermen will also become eligible for other BML financial products, including home finance, study loans for family members, and credit cards. While annual repayment obligations will remain consistent, BML has indicated that allowances may be considered to accommodate periods of low fishing season, providing a degree of flexibility for borrowers. This measure acknowledges the inherent variability of income within the fishing industry.
This move by Bank of Maldives and the Ministry of Fisheries is expected to provide significant financial support to fishermen, enabling them to invest in their businesses, maintain their equipment, and improve their livelihoods, thereby contributing to the overall sustainability of the Maldivian fishing industry.
