Letters of credit (L/Cs) feature in Bank of Maldives' (BML's) new unsecured Working Capital Finance (WCF) facility.

It aims to provide businesses with access to finance of up to 3 million rufiyaa (MVR 3 million - US$195,000) to meet short-term funding and cash flow requirements.

Features

The facility can be used as a credit line for L/Cs, overdrafts, bank guarantees or as a demand loan.

The WCF facility allows businesses to finance up to 20 per cent of their past 3 years' average annual sales, up to a maximum amount of MVR 3 million with a repayment period of up to 3 years.

Rate reductions

At the same time as BML introduced the WCF, it announced a reduction in interest rates for business development loans, guest house loans, real estate loans, and secured retailers' loans.

Similar changes are reflected in the profit rates of equivalent Shari'ah compliant offerings from BML Islamic.

The bank has also announced a reduction in equity required for home construction loans that will now require 20 per cent equity compared with 30 per cent previously.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.