SME Digital Launches Low-Cost Islamic Micro Financing to Expand Financial Inclusion

Applications have opened for a new Islamic Micro Financing product aimed at widening access to finance for underserved entrepreneurs, as SME Digital rolled out the facility under the Maldives Islamic Social Financing Initiative (MISFI).

The financing scheme is the first product introduced by Bank of Maldives through MISFI and offers funding of up to MVR 100,000 at a financing rate of 2.5 percent, the lowest currently available in the Maldives. Designed to support long-term business stability, the product provides an extendable tenor of up to 10 years, a grace period of up to 12 months, and flexible terms including zero application and processing fees.

Islamic Micro Financing specifically targets individuals and businesses that face difficulties accessing finance through the traditional banking system, including micro, small, and start-up enterprises. Structured fully in line with Islamic principles, the product is open to individuals who have not previously received financing from any bank or financial institution, positioning it as a gateway for first-time borrowers to enter the formal financial sector.

Speaking on the launch, Badhurudheen Hassan, Chief Executive Officer of SME Digital, said the initiative is intended to build a more inclusive and accessible financial system. He noted that by expanding access to finance, the programme aims to help individuals demonstrate their potential, unlock growth opportunities, and encourage the creation of new start-ups, while also enabling informal and home-based micro businesses to formalise and strengthen their operations sustainably.

Applications for Islamic Micro Financing are now open and can be submitted through the SME Portal at www.smedigital.mv, marking a significant step in bridging the gap between underserved communities and the formal banking sector in the Maldives.