SDFC launches Shariah loans for local tourism

The SME Development Finance Corporation (SDFC) has introduced a new financing facility to support small and medium enterprises (SMEs) engaged in local tourism.

The facility, named Thijara Rashu Fathuru, was launched through SDFC’s Islamic window, SDFC Thijara, on a Shariah-compliant basis. It is designed on the principles of diminishing musharakah and murabaha to purchase order.

According to SDFC, the product provides financing arrangements that meet business needs while remaining in line with Shariah rules. It aims to provide access to financial resources, help expand existing businesses, and support the creation of new enterprises.

The commercial island tourism financing rate is set at 5 per cent, with a maximum grace period of 18 months, during which a concessional payment applies. The repayment period extends up to 10 years.

For guesthouse construction, the minimum loan amount available for both start-ups and existing businesses is MVR 200,000, while the maximum is MVR 5 million. For other tourism-related businesses, such as those in restaurants or water sports, the maximum available amount is MVR 1.5 million.

The facility may also be used for the renovation and development of existing guesthouses, the introduction of technology such as online booking systems, mobile applications, and website development.

SDFC stated that the facility was introduced to broaden Shariah-compliant financial services and confirmed plans to add further products under SDFC Thijara.

Applications for the facility are now open through the SME portal on the company’s website.