HFC has taken up the challenge of venturing into the area of microfinance and not having a purely economic but a socio-economic objective.
And the launch of the microfinance loan product yesterday was possible after the central bank set clear directives for HFC to diversify into microfinance products.
In his address at the launch, Trade and Industry Ministry permanent secretary, Shaheen Ali, said the loan product was a timely initiative to complement government's effort in creating a vibrant small business sector that provided the stimulus for growth.
"This is a first kind of micro loan scheme that comes with its unique and innovative insurance cover similar to mortgage protection," Mr Ali said.
HFC chief executive officer Isikeli Tikoduadua said they felt it was part of their social responsibility to have such a product.
"First time individuals will have access to $1000 and once fully paid, will qualify for $2000.
"Those groups and clubs who are first time borrowers will qualify for $2000 and once fully paid will qualify for $5000," Mr Tikoduadua said.
He said there would be no interest but a 10 per cent flat fee.
The company was targeting individuals, youth and women's club, co-operatives, religious groups, non-governmental organisations, landowners and small-scale farmers interested in micro project funding and rural based projects.