Loans of up to MVR 3 million to be issued for housing in islands

Bank of Maldives (BML) has announced it will issue loans of up to MVR 3 million for the construction and repair of houses across islands.

The bank’s board confirmed the loans will be unsecured.

Previously, loans of up to MVR 1 million were available for housing in the islands without collateral, while residents in cities could access up to MVR 3 million.

BML said the expansion was prompted by the rising cost of construction in island communities. The new loans will carry an interest rate of 5 percent  and a repayment period of 20 years.

Alongside the new scheme, BML highlighted its Home Equity loan, introduced last year. The facility allows customers to borrow up to the amount they have already paid towards a property.

Home Equity loans are available for amounts above MVR 50,000 and also carry a 20 year repayment period. Customers with existing home finance can access the loan at an interest rate of 10 percent.