Financing Mechanism
FINANCING MECHANISM
Development
Bank of Mauritius Ltd
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En vue d’apporter un soutien supplémentaire aux Petites et Moyennes Entreprises
(PME) ainsi qu’aux travailleurs indépendants (self-employed), le Ministère des Finances,
de la Planification Économique et du Développement annonce la mise en place de 5
mesures d’assistance exceptionnelles.
Cliquez ici pour voir les mesures
Micro Credit Scheme
Objective
To provide finance to Micro Enterprises with turnover of less than Rs 2 Million
Financing
- A maximum loan amount of Rs 500,000
- Interest rate of 3% p.a.
- Moratorium period up to 6 months and Repayment period up to 5 years
Backyard Gardening
Objective
To encourage gardening in backyards and roof top productions, whilst empowering housewives
To meet plantation costs, tools, and accessories
Eligibility Criteria : Housewife
- Maximum loan amount of Rs 25,000
- Financing up to 100 % of project cost
- Interest rate of 0.5% p.a
- Repayment period up 4 years
- Security as per bank’s requirement
Computer
Objective
To meet cost of purchase of computers, laptops printers and individual internet connections.
Eligibility Criteria : Household for educational purposes
- Maximum loan amount of Rs 50,000
- Financing up to 100 % of project cost
- Interest rate of 3% p.a
- Repayment period up 4 years
Rainwater Harvesting Scheme
Objective
To meet purchase cost of rainwater harvesting systems in order to encourage household to collect rainwater and reduce water run-offs from roof tops into drain.
Eligibility Criteria
- Household
Features
- Maximum loan amount of Rs 50,000
- Interest rate of 3% p.a
- Repayment period up 5 years
- Security as per bank’s requirement
Urban Terminal Hawkers Loan Scheme
Objective
To allow hawkers to buy their own stalls in the new urban terminals at Victoria and Immigration Square Stations in Port Louis
Features
- Up to 75% of project costs with a maximum loan amount of Rs 300,000
- Interest rate of 3% p.a.
- Repayment period up to 5-7 years
Women Entrepreneur
Objective
To support any project of registered women entrepreneurs with SME Mauritius or National Women Entrepreneur Council (NWEC) or Food and Agricultural Research and Extension Institute (FAREI) excluding trade, transport, construction & related projects.
Features
- Up to 90% of project cost with a maximum loan amount of Rs 500,000
- Interest rate of 0.5% p.a.
- Moratorium period up to a maximum of 1 year and Repayment period up to 7 years
Multipurpose Loan Scheme
Objective
Short term financial assistance to existing DBM clients
Features
- Maximum loan amount of Rs 200,000
- Interest rate of 9% p.a.
- Repayment period up to 3 to 5 years
Taxi, Pleasure Craft, Vans and Minibus Operators based at Hotels scheme
Objective
To provide financial support to transport operators operating from hotels in the form of income subsistence.Eligibility Criteria
- Taxi operators
- Pleasure Craft operators
- Vans and Minibus operators based at the hotel
Features
- Maximum loan amount of Rs 100,000
- Financing up to 100% of project cost
- Interest rate of 2% p.a
- Moratorium period up to a maximum of 1 year
- Repayment period up to 4 years
- Security as per bank’s requirement
Revolving Credit Fund
Objective
To meet short-term working capital requirements and preserve jobs
Features
- Maximum loan amount of Rs 1 million
- No interest chargeable up to 30 June 2021 and 1.5% p.a. thereafter
- Repayment period up to 3 years
- Moratorium up to 30 June 2021
Enterprise Modernisation Scheme
Objective
To provide micro and small entities with leasing facilities in order to facilitate innovation through acquisition of modern equipment, to be more productive and efficient thereby lowering their cost of production and becoming more competitive.
Features
- Maximum loan amount of Rs 1 million excl. VAT
- Interest rate of 1.75% p.a. up to 31 Dec 2020 and 3.5% p.a. thereafter.
- Repayment period up to 5 years
New Agricultural Loan
Objective
To meet cost for Construction of greenhouse, Plantation, Purchase of irrigation/fertigation system and other allied inputs, Fencing, Breeders & poultry farming, Aquaponic, etc.
Features
- Up to 90% of project cost with a maximum loan amount of Rs 5 Million
- Interest rate of 2% p.a.
- Moratorium period up to a maximum of 1 year and Repayment period up to 7 years
Mechanisation
Objective
To meet purchase cost of machinery & equipment
Features
- Up to 90% of project cost with a maximum loan amount of Rs 1 Million
- Interest rate of 2% p.a.
- Moratorium period up to a maximum of 6 months and Repayment period up to 7 years
Agro Industry
Objective
To meet purchase cost of machinery, equipment for transformation, processing, packaging, construction of warehousing facilities, and transfer of technology
Features
- Up to 90% of project cost with a maximum loan amount of Rs 5 Million (can be increased to Rs 10 million subject to Board Approval)
- Interest rate of 2% p.a.
- Moratorium period up to a maximum of 1 year and Repayment period up to 7 years
Seeds & seedlings
Objective
To meet plantation costs, construction of storage facilities, purchase of machinery and equipment
Features
- Up to 90% of project cost with a maximum loan amount of Rs 1 Million
- Interest rate of 2% p.a.
- Moratorium period up to a maximum of 1 year and Repayment period up to 7 years
Upgrade of IT Infrastructure colleges
Objective
To meet cost of purchase of IT equipment such as laptops, printers, overhead projectors and other network accessories
Eligibility Criteria
- Colleges registered with PSEA
Features
- Maximum loan of MUR 1.5 million
- Interest Rate of 5% per annum
- Rapayment Period up to 7 years
- Financing 100% of Project Cost
Equity Financing
- SME Equity Fund (SEF)
- Investment Support Programme Limited (ISP)
- Equity Participation Scheme (SIC)
Objective
- The SEF invests in start-ups, expansion projects and new lines of business.
- Provide equity financing to companies established in Mauritius, and where the majority shareholder carrying majority voting rights is a Mauritian.
- After the evaluation of the project, the Board decides whether to go ahead with the project or not.
- Investment range starts at Rs 500,000 and can reach up to Rs 25m. The financing should not exceed 49% of business’ equity capital and the entrepreneur must invest in at least 51% of the share capital.
Criteria
- One or more directors from the SEF may be appointed to the investee company’s board of directors, depending on the size of the investment.
- The investee company must not have arrears with the Mauritius Revenue Authority, National Pension Fund or any other authorities.
- For existing companies, the entrepreneur must show that they have a good track record of sound business activities and they must also have audited accounts.
Leasing Equipment Modernisation Scheme (LEMS I, II, III)
- Annual Turnover up to Rs 50M
- Reduced Interest Rate of 2.5%
- Annual Turnover above Rs 250m
- Dividend Rate will depend on financial performance
SME FINANCING BY
COMMERCIAL BANKS
Commercial banks which are key players in the financial systems of nearly every economy, have the potential to pull financial resources together to meet the credit needs of SMEs. Through their intermediation role commercial banks are meant to provide financial succor to SMEs in Mauritius. More information is available on their respective website:
Crowdlending
Crowdlending is a new and alternative method for SMEs and startups to raise finance without the inclusion of a financial institution. With the entrance of this alternative financing method, a new breed of small investors will eventually enter the capital market.
Fundkiss engaged in crowdlending opens up a new world of opportunities for investors and SMEs – in Mauritius. Be part of a financial revolution that is as rewarding for lenders as it is for borrowers.
