Maldivian government to issue housing loans for first time home builders on a five percent interest rate.
Housing Ministry said today that they plan to open up applications for the housing loan scheme 'Hiyaavehi' with a minimal interest fee.
This is in line with President Dr. Mohamed Muizzu's pledge to offer small interest housing loans for individuals planning to build their first home, or those who have started, but are unable to finish building their homes.
As a step towards this effort, the Housing Ministry signed an MoU with Bank of Maldives (BML) in a ceremony held at the Ministry. The bank will act as a financing parter to launch the loan scheme, said the government.
The MoU was signed by Minister Ali Haidar Ahmed on behalf of the ministry, while BML's new CEO Mohamed Shareef signed on behalf of the bank.
The ministry has also signed with Housing Development Financing Corporation (HDFC) and Maldives Islamic Bank (MIB) as financing partners.
The government said this is a small loan issued as financial assistance to people who want to build their homes.
- Loan will be issued with a five percent interest rate
- Repayment period is 25 years
- Loan to be issued to first time home builders
- Loan will also be issued to those who have started but have not completed building their first home
As per the government, they are working to launch and open up applications for the financing scheme within a week.
President Dr. Mohamed Muizzu previously said that the loans would be disbursed to three categories; MVR six million for Malé, MVR three million for urban centres and MVR one million for other islands.
People residing in any Maldivian island would be able to apply for the loans, the government said.
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