Second phase of Fashaa Madhadhu loan scheme to on begin June 15

The second phase of the "Faashaa Madhadhu" loan scheme for women will open for applications on June 15, SME Development Finance Corporation (SDFC) said.

This phase of the MVR 100 million start-up loan scheme will continue accepting applications until August 31.

Applications can be submitted via the online portal available on the SDFC website. The scheme is specifically designed for female entrepreneurs who face challenges in securing loans through traditional banks due to irregular income.

In the first phase of the scheme, which began last year, 63 women were approved for loans, including four women with disabilities. Loans were issued across 16 atolls, including the Male’ area, supporting 13 types of business activities such as wholesale and retail, food takeaways, food manufacturing, sewing services, and salons.

Under the Faashaa Madhadhu scheme, women entrepreneurs can access loans ranging from MVR 100,000 to MVR 500,000.

These loans come with a 12-month grace period and are repayable over a period of seven years, with an interest rate of six percent. The program targets self-employed women, freelancers, and home-based entrepreneurs, providing essential funding for purchasing business-related goods. A key feature of the program is that 25 percent of each phase’s allocation is reserved for women with disabilities. The loan scheme, which is being rolled out in five phases with MVR 20 million allocated to each phase, is part of President Dr Mohamed Muizzu’s pledge to support women’s economic empowerment.