Govt launches low-interest housing loan programme
Applications for the loans will be available through the Hiyaavehi Portal starting Wednesday.
Government on Tuesday launched a programme to provide soft loans at low interest rates for housing construction.
The Hiyaavehi Financing Programme was inaugurated at a ceremony held at the Islamic Centre, fulfilling President Mohamed Muizzu’s promise to improve access to housing loans.
President Muizzu announced that the scheme will offer three types of loans:
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Hiyaavehi Rahvehi: This loan, facilitated through Housing Development Financing Corporation (HDFC), is designated for housing construction in islands. It does not require equity payments but includes a fee for land ownership at rates set by the housing ministry. The loan will be repayable over 25 years at 5% interest.
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Hiyaavahi Saharu: Aimed at housing projects in urban centres, this loan offers up to MVR 3 million at 5% interest, also with a 25-year repayment term.
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Hiyaavahi Furamale: This option, designated for Male, will provide loans of up to MVR 6 million. Borrowers are required to contribute 10% equity, with a 25-year repayment term at 5% interest. The scheme will also support housing construction on land plots smaller than 600 acres, with an additional MVR 1 million for each land unit added beyond the initial amount.
Housing minister Dr Ali Haider Ahmed specified that applicants must not own a flat or housing unit provided under government schemes. The loans will be reserved for those seeking to secure their first home.
“Relevant rules, regulations, and conditions will be published in the gazette before the end of this week,” Haider stated.
Haider emphasised that the scheme will open up housing opportunities for families previously unable to find suitable accommodation. Loans will be issued for the construction of new houses, the completion of unfinished homes, and the reconstruction of houses in need of repair.
Applications for the loans will be available through the Hiyaavehi Portal starting Wednesday.
