BML raises loan age limit to 75 years
Until now, loans were issued on a maturity basis tied to a maximum borrower age of 60 years.
The Bank of Maldives (BML) has raised the maximum age for issuing loans and financing from 60 to 75 years.
BML Chief Executive Officer Mohamed Shareef said the decision was taken at a board meeting held yesterday.
Until now, loans were issued on a maturity basis tied to a maximum borrower age of 60 years. Shareef said that under the previous policy, a 55-year-old borrower could obtain a loan with a repayment period of five years. Under the revised limit, the maximum age has been extended to 75 years.
He said the change would allow borrowers in middle age to access loans for purposes such as housing, with repayment periods extending to 20 or 25 years.
The board has also decided to reduce interest rates on loans issued to customers earning in dollars, provided repayments are made in dollars. Shareef said the standard interest rate would be reduced by 1.5 per cent and the equity requirement by 5 per cent.
He added that individuals working abroad with stable income would be eligible for housing loans.
Shareef said that income earners above the age of 75 would also be eligible to obtain credit cards from the bank.
