Ministry, BML sign agreement for low-interest housing loans
The bank will complete the evaluation of applications and submit them to the ministry within two weeks of receipt.
The Ministry of Housing and Construction has signed an agreement with the Bank of Maldives (BML) to offer low-interest housing loans under the 'Hiyaavehi' scheme.
The agreement was formalised at a ceremony held at the Housing Ministry on Tuesday. Minister Dr Abdulla Muththalib signed on behalf of the Ministry, while BML CEO and Managing Director Mohamed Shareef represented the bank.
The initiative is part of President Mohamed Muizzu’s pledge to provide housing loans at a 5% interest rate to individuals who own land but lack the financial means to construct homes.
According to BML CEO Shareef, loan repayments will be spread over 25 years. The bank will complete the evaluation of applications and submit them to the ministry within two weeks of receipt.
Applicants will undergo a financial screening to determine their repayment capacity.
The scheme includes three categories of loans:
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Rahvehi: Loans of up to MVR 1 million for housing in the atolls. No equity contribution is required.
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Saharu: Loans of up to MVR 3 million for housing in urban centres. An equity contribution of between 5% and 10% is required.
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Fahimale: Loans of up to MVR 6 million. Applicants must contribute equity between 5% and 10%.
The Ministry stated that the scheme aims to facilitate access to housing finance for those who have land but are unable to proceed with construction due to lack of funds.
