Bank of Maldives (BML) has reduced the equity or personal contribution requirement to five percent for projects up to MVR 3 million under its Home Construction Financing.

Previously, the equity for BML Home Construction Financing stood at 20 percent.

The bank stated that lowering this amount to five percent is a significant relief for customers. The primary objective of this change is to facilitate easier access to the financing required for building homes across various parts of the Maldives, the bank added.

BML’s CEO and Managing Director, Mohamed Shareef, stated that as the national bank, prioritizing a leading role in providing solutions to the housing difficulties faced by Maldivian families is a key focus.

"With the reduction of equity to five percent, one of the biggest obstacles faced in home construction has been removed, paving the way for many Maldivians to build their own homes," Sharif said.

"For example, whereas a project of MVR 2 million previously required MVR 400,000 as equity, financing can now be obtained with just MVR 100,000. This is a very significant relief for customers."

BML noted that for housing projects exceeding MVR 3 million, loans or financing will continue to be issued with a minimum of 20 percent equity, as was the case previously.

With a rate of nine percent, BML remains the bank providing housing finance at the lowest rate in the Maldives. Last year, the bank also reduced the equity requirement to five percent for those purchasing homes.

BML stated that it always strives to consider customer needs and facilitate opportunities for as many customers as possible to access financial assistance.