Maldivian Youth Secure $18.74 Million in New Small Business Startup Loans

President Dr. Mohamed Muizzu has announced that USD 18.74 million has been disbursed to young Maldivians through a strategic loan scheme designed to transform innovative ideas into sustainable small and medium-sized enterprises (SMEs). Introduced last July, the Youth Entrepreneurship Financing initiative aims to empower the next generation of business owners and reduce the national reliance on public sector employment. Speaking at the People’s National Congress party congress, the President emphasized that the government is actively creating commercial opportunities to ensure that young people have viable alternatives to government payrolls, particularly as state-owned enterprises undergo rightsizing. The initiative operates via a USD 64.85 million facility established through a partnership between the Bank of Maldives and SME Digital. The first phase of the program saw significant demand, with 3,536 applications submitted and 2,081 applicants successfully securing financing from an initial allocation of USD 19.46 million. President Muizzu highlighted the accessibility of the program, noting that the loans are offered at low interest rates to those aged between 18 and 30. By providing this capital, the administration seeks to foster a culture of entrepreneurship and economic independence among the youth. Eligible applicants and freelancers can secure up to USD 9,727.63 under the scheme. The loans carry a 7 percent annual profit rate with a five-year tenure, including a six-month grace period. To ensure the sustainability of these new ventures, the Bank of Maldives provides a rapid 24-hour evaluation process, while SME Digital offers critical business guidance, mentorship, and professional training. Applications for the second round of funding are scheduled to open on November 1. The government projects that approximately 6,000 young entrepreneurs will benefit from the facility once it is fully deployed, marking a significant investment in the Maldives' private sector growth.