Repayment period for SDFC loans extended

SME Development Finance Corporation Limited (SDFC) has announced their decision to extend the repayment period of loans issued during the COVID-19 pandemic to 10 years, starting from the date of issuance of the loan.

SDFC, in a statement on Friday, said changes to the loan following the waiver of interests can be viewed through their customer portal within the week the government reopens after the Eid al-Fitr holidays.

They further detailed that the amount paid as interest to date will be deducted from the principal loan amount. The borrower will be reimbursed if the amount paid as interest exceeds the principal loan amount by any sum, SDFC added.

Meanwhile, borrowers who have settled the interest payment will be reimbursed the sum as well.

President Dr. Mohamed Muizzu announced the waiver of interest on loans provided during the COVID-19 pandemic through the SDFC and Housing Development Finance Corporation (HDFC) during a meeting with L. Fonadhoo residents last night.

Speaking at the meeting, he highlighted the challenges faced by people in repaying loan interest due to the pandemic and emphasized that this measure aims to provide further relief to the public.

As per the President, borrowers can apply for the interest waiver upon the Government reopening post-Eid al-Fitr.

He also said the previous administration, despite announcing the intention to wave the interest on these loans, had not followed through with the announcement.