Credit Guarantee Scheme - CGS

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:

CategoryFull time employees
Annual Income/Turnover (MVR)
Micro Enterprise5 - 00 - 500,000
Small Enterprise6 - 30
500,001 - 5,000,000
Medium Enterprise31 - 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.

Salient features of Credit Guarantee Scheme 

  • Minimum financing amount - MVR 100,000
  • Maximum financing amount - MVR 1,000,000
  • Profit rate- 9% per annum
  • Tenure - Up to 5 years; including a grace period of maximum 12 months (if applicable).
  • Collateral
    1. 90% covered by Credit Guarantee Scheme 
    2. 10% covered by MIB as unsecured
  • Fees and Charges
    1. All charges that may incur as a result of acquisition of the assets such as valuation charges, TT charges, LC charges, SWIFT charges etc shall be borne by the Customer and disclosed upfront at the time of the sanction of the facility.
    2. MMA will charge 1% annual fee which will be collected through the Bank.

Eligibility Criteria of Credit Guarantee Scheme

  • Must be a Maldivian business entry registered with Ministry of Economic Development as SME. 
  • The ownership of the SME should constitute of Maldivian nationals only.
  • No past due from any financial institutions.
  • The SME should also be registered at MIRA.

How to apply?

If you have met the above eligibility criteria you may apply to any of the MIB branches by filling our application form and required documents as mentioned in it.


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