In the vibrant economic landscape of the Maldives, access to diverse financial services is crucial for both individuals and businesses. Maldives Finance and Leasing Company Private Limited, commonly known as MFLC, has played a significant role since its inception. As the nation’s first non-bank leasing institution, MFLC has expanded its offerings to include a broad spectrum of consumer and business finance products, making it a key player in the Maldivian financial sector.
MFLC's Journey and Core Business
Maldives Finance and Leasing Company Private Limited was officially incorporated in October 2001 and commenced its operations in June 2002. Its establishment was a direct outcome of an initiative by the International Finance Corporation (IFC) and the Maldives Monetary Authority (MMA), aimed at diversifying the financial services available in the country beyond traditional banking. Initially structured with support from these international and national bodies, MFLC later transitioned its ownership.
In April 2014, Tree Top Investments Private Limited, a prominent local investment group, acquired MFLC. This acquisition marked a new chapter for the company, further rooting its operations within the local economy and aligning its strategies with national development goals.
MFLC's core business revolves around providing full-payout finance leasing for movable assets to businesses, alongside offering lease and loan financing solutions for individuals. The company’s target market is quite distinct:
- Small and Medium Enterprises (SMEs): MFLC assists businesses in acquiring essential assets such as marine vessels, heavy machinery, and vehicles, which are vital for industries like tourism, construction, and logistics in the Maldives.
- Civil Service Professionals and Salaried Individuals: For individuals, MFLC provides financing for consumer durables, motorbikes, and home improvement projects, often leveraging salary-based underwriting.
The leadership team at MFLC brings extensive experience. Mr. Lars Eugen Petré serves as Chairperson, bringing a wealth of knowledge from tourism investment. Ms. Ibthishama Ahmed Saeed, with over two decades of experience, leads as the Chief Executive Officer and Managing Director. Mr. Sunil Balakrishnan, a Chartered Accountant, is the Chief Financial Officer and a Non-Executive Director.
Products, Rates, and Application Essentials
MFLC offers a range of financial products tailored to meet various needs, from personal expenses to business investments. Understanding the specifics of each product, including interest rates, fees, and application requirements, is essential for potential borrowers.
Loan and Lease Products
- Faseyha Loan & Lease (Personal): This product offers financing up to MVR 500,000. Repayment tenors range from 6 to 60 months. Collateral is generally not required for these facilities. However, a guarantor becomes necessary for amounts exceeding MVR 250,000.
- Fahi Personal Loan: Designed for larger personal financing needs, this loan ranges from MVR 100,000 up to MVR 1,500,000, with a maximum tenor of 48 months. This product typically requires property or vehicle (four-wheelers) as collateral and an individual guarantor.
- Finance Lease (Salhi, Direct, Lifestyle, V-Lease): These leasing products vary significantly by the asset being financed. The asset itself often serves as collateral. Depending on the specific lease product, equity contribution or an additional guarantor may be required.
- Housing Loan (Home Improvement): While specific finance limits are not publicly disclosed for this product, it is structured for home improvement purposes. It usually requires property as collateral and a minimum equity contribution of 20 percent from the applicant.
- Debt Factoring: MFLC also provides debt factoring services, where accounts receivables act as the primary collateral.
- MFLC Maal: In a move to expand its offerings, MFLC launched Shariah-compliant "MFLC Maal" products in 2024, catering to customers seeking Islamic finance solutions.
Interest Rates and Fees
Interest rates vary based on the product and tenor:
- Faseyha Loans & Leases:
- For tenors of 6–12 months: 18 percent per annum.
- For tenors of 12–36 months: 20 percent per annum.
- Fahi Personal Loan, Business Loans & Leases: The standard rates for these products are not publicly published. However, MFLC occasionally offers promotional rates, which have been as low as 14 percent per annum during specific periods, such as year-end offers.
Regarding fees, a documentation or origination fee of MVR 750 is charged upon the signing of the agreement. Information regarding late payment fees is not publicly disclosed.
Terms and Repayment
Loan tenors are flexible, ranging from 6 to 60 months, depending on the specific product and the applicant's salary structure. Repayment is facilitated primarily through salary deduction agreements, a common and convenient method in the Maldives. Alternatively, customers can make repayments via online bank transfers to MFLC’s Bank of Maldives account (7701134414003).
Underwriting decisions are based on the last six months’ salary slips, ensuring that the take-home salary is not less than 50 percent of the total. Employment continuity and the employer's registration status are also critical factors.
Application Process and Requirements
Applying for MFLC's services is straightforward. Applicants can visit one of their physical branches located in Male’ (Head Office) or Hulhumalé. Alternatively, application forms can be downloaded from their website and submitted via email to [email protected].
For onboarding and Know Your Customer (KYC) procedures, applicants typically need to provide:
- A completed application form.
- Original employment letter.
- Six months’ salary slips.
- Copies of identification documents.
- Quotations for the asset to be leased (if applicable).
- Guarantor documents (if a guarantor is required).
Once all necessary documentation is in order, MFLC generally processes applications within 3 to 5 working days. Approved funds are disbursed primarily via bank transfer or through salary deduction agreements.
Technology, Regulatory Status, and Market Presence
MFLC's operational approach combines traditional branch services with digital convenience, all while operating under strict regulatory oversight and maintaining a strong position in the Maldivian financial market.
Technology and User Experience
MFLC maintains a responsive website that serves as a central hub for customers. It features product calculators, downloadable forms, and contact information, streamlining the initial stages of the application process. However, it is important to note that MFLC currently does not offer a dedicated mobile application for loan management or application submission through app stores. This means customers rely on the website or physical branches for their interactions.
The company’s geographic coverage extends nationwide, not only through its two branches but also significantly through its employer-registered schemes, which reach salaried individuals across various islands.
Regulatory Status and Compliance
As a crucial non-bank financial institution, MFLC is fully licensed and regulated by the Maldives Monetary Authority (MMA). This regulatory oversight ensures that MFLC adheres to prudential norms, as well as strict Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, safeguarding consumer interests and maintaining financial stability.
A significant development for MFLC is the granting of a banking license by the MMA in mid-2025 (Reference PR/2025/004). This transition will likely broaden MFLC's service offerings and its competitive landscape, marking a pivotal moment in its history.
MFLC emphasizes consumer protection through transparent fee disclosures, safeguards within its salary-deduction processes, and a dedicated grievance email ([email protected]) for customer concerns.
Market Position and Competition
MFLC holds a leading position as a non-bank leasing provider in the Maldives. It competes with major financial institutions such as the Bank of Maldives (BML), Maldives Islamic Bank (MIB), and the SME Development Finance Corporation (SDFC). MFLC differentiates itself through several key aspects:
- Specialized Underwriting: Its strong focus on salary-deduction based underwriting allows for tailored solutions for salaried professionals.
- Micro-Leases: MFLC offers micro-leasing options, catering to smaller asset acquisition needs.
- Customized Solutions: The company provides customized lease products specifically designed for tourism-related SMEs, reflecting its understanding of the local economy.
The establishment of its Hulhumalé branch in 2023 and the launch of Shariah-compliant products in 2024 demonstrate MFLC's commitment to growth and adapting to market demands. Strategic partnerships, including employer and supplier schemes, and synergies within the Tree Top Investments group, especially with tourism conglomerates, further bolster its market presence.
Customer feedback, while not widely available on public review platforms, includes testimonials on MFLC's website praising the ease of process and flexible terms. Common complaints often relate to the limited online payment receipt issuance and the requirement for in-person signing, which is common for financial agreements in the Maldives.
Practical Advice for Potential Borrowers
For individuals and businesses in the Maldives considering MFLC for their financial needs, here is some practical advice to ensure a smooth and informed borrowing experience:
- Understand the Product Type: Clearly differentiate between a loan and a lease. Loans provide direct funds, while leases grant usage of an asset over time with an option for ownership. Choose the product that best aligns with your specific need.
- Verify Eligibility and Requirements: Before applying, carefully review the specific eligibility criteria for your chosen product. This includes salary thresholds, employment continuity, and the requirement for a guarantor or collateral, especially for amounts above MVR 250,000. Prepare all necessary documents in advance to avoid delays.
- Compare Interest Rates: While MFLC publishes rates for Faseyha Loans, rates for other products may vary or be offered as promotions. It is prudent to inquire about the specific Annual Percentage Rate (APR) applicable to your desired product and compare it with offerings from other institutions like the Bank of Maldives or Maldives Islamic Bank.
- Be Prepared for Manual Processes: MFLC's processing typically takes 3 to 5 working days, and KYC verification is a manual process. Expect to provide original documents and potentially visit a branch for signing, as there is no mobile application for end-to-end digital processing.
- Understand Repayment Methods: Familiarize yourself with the repayment options, predominantly salary deduction or online bank transfer. Ensure your salary structure allows for the deduction without impacting your essential expenses, as MFLC requires take-home pay to be at least 50 percent of your total salary.
- Clarify All Fees: Beyond the MVR 750 documentation fee, inquire about any other potential charges, including late payment fees, to have a complete understanding of the total cost of financing.
- Utilize Customer Support: If you have any questions or require clarification on terms, rates, or the application process, do not hesitate to contact MFLC via their website contact forms, email ([email protected]), or by visiting their branches.
MFLC continues to be a vital financial partner for many Maldivians. By understanding its offerings and processes, borrowers can make informed decisions to meet their personal and business financial goals effectively.
