What is Credit Guarantee Scheme ?
Credit Guarantee Scheme (CGS) is developed by Maldives Monetary Authority (MMA) to finance Micro, Small and Medium Enterprises or collectively known as SMEs. This scheme will encourage and motivate the participating financing institutions operating in Maldives to provide the intended facilities to SMEs by sharing the financing risk between the Authority and the Banks, encouraging new investments in selected prioritized sectors of the economy which includes tourism, fisheries, agriculture, construction, transport, IT and creativity.
Classification of SMEs
The classification for Micro, Small and Medium Enterprises (MSMEs) in the context of SME Law is given below:
| Category | Full time employees | Annual Income/Turnover (MVR) |
| Micro Enterprise | 5 - 0 | 0 - 500,000 |
| Small Enterprise | 6 - 30 | 500,001 - 5,000,000 |
| Medium Enterprise | 31 - 100 | 5,000,001 - 20,000,000 |
For SME's to be classified, it has to be registered with the Ministry of Economic Development in some form; for example, as Sole Proprietorship or as a Partnership or as a Company. In addition to this, the business should be registered as an SME with the Ministry of Economic Development, to be eligible for the CGS scheme.
Offered Products under CGS
1 - Murabahah General Asset Financing
The facility may be used by the customers for purchase of equipment, plant, machineries, engines, construction equipment etc. The facility may shall primarily be available for brand new items; however if used items are to be financed through this facility, a third party independent valuation will be conducted by the Bank, the actual cost of which shall be borne by the customer.
2 - Murabah Vessel Financing
The facility may be used for purchase of completed or under construction vessels that may include speed boats, fishing dhonis, cargo vessels, ferrys etc. For used vessels a third party independent valuation will be conducted by the Bank, the actual cost of which shall be borne by the customer.