BML and SME Digital Launch Unsecured Loans to Boost Youth Entrepreneurship

The Bank of Maldives (BML), in collaboration with SME Digital, has introduced a new Youth Entrepreneurship Financing facility designed to help young Maldivians establish and scale micro- and small-enterprises. The initiative was formally inaugurated by President Dr Mohamed Muizzu during the Youth Entrepreneurs Expo held in Male’ on July 15. Specifically targeted at individuals aged 18 to 30, the facility removes traditional barriers to entry by offering unsecured loans. This means eligible applicants can access up to USD 9,700 without the need for collateral or equity. To support the agility required by startups, the program features a streamlined approval process, with credit decisions delivered within 24 hours of application. The financing is offered at a competitive annual interest rate of 7 percent. To mitigate the financial strain often associated with the early stages of a business, borrowers are granted a flexible repayment term of up to five years, which includes a six-month grace period to help stabilize cash flow. Recognizing that capital alone is not enough for long-term viability, the partnership integrates a support system managed by SME Digital. Recipients will have access to hands-on business guidance, mentorship, and specialized training workshops aimed at building sustainable business models. Mohamed Shareef, CEO and Managing Director of BML, described the MVR 1 billion financing scheme as an investment in the nation's future, stating that it aims to transform raw ideas into viable businesses while equipping youth with essential professional capabilities. Badhurudheen Hassan, CEO and Managing Director of SME Digital, emphasized the importance of speed and accessibility in the application process, noting that quick disbursements allow young entrepreneurs to launch their ventures without unnecessary delays. This launch marks a strategic move toward greater financial inclusion and economic diversification in the Maldives. By lowering the threshold for business ownership, BML and SME Digital aim to trigger a wave of homegrown innovation and job creation driven by the next generation of Maldivian leaders.