Inauguration Ceremony of 'Disaster Relief Loan Scheme'
Minister of Defense and National Security, Honorable Adam Shareef Umar along with Bank of Maldives Retail Banking Director, Mr Mohamed Shareef has launched the Disaster Relief Loan Scheme on 24 July 2016 (Sunday) at Sea Tracs Building.
Speaking during the ceremony, Adam Shareef Umar said that the government made the decision to introduce the loan scheme as they had noticed the assistance provided by the government was not enough to citizens who suffer loss from disasters. National Disaster Management Center first assesses the damages from disasters, where the government then covers approximately 40 percent of the cost. Those who had been provided assistance by NDMC for natural or man-made disasters are eligible for the loan scheme. "The government’s decision to provide assistance, rather than the disaster itself will be considered for this,” said Deputy Minister, Ms Fathimath Thasneem.
BML Disaster Relief loan scheme is designed to give support to the families to repair infrastructural damages caused by disasters and to help rebuild their life after a disaster. Citizen are eligible to apply for this loan scheme for following disasters;
- Flooding due to heavy rainfall
- Flooding due to sea surge (Udha eyrun)
- Wind Storms
- Tsunami
- Hurricanes
- Fire
- Earthquake
Bank of Maldives introduced disaster relief loan scheme in collaboration with the National Disaster Management Center to provides assistance for damages to household and property of the ordinary civilians in case of a disaster. To be eligible to apply for the loan;
- Government should identify the infrastructural damages from the disaster.
- Government have had provided assistance for the disaster.
- The maximum amount issued is MVR 510,000
- Applicant has to repay the loan in 15 years.
- Interest rate is 9% (lowest interest rate offered by BML at the moment. Loan interest rate will go down if the base interest rate goes down.)
- One year grace period