Maldives Pension Administration Office (MPAO) on Monday implemented their new policy and regulations on housing loans for members of the Pension Fund.
Titled “Retirement Saving Collateralization (RSA) Scheme for Homeownership”, the scheme is offered to members of Maldives Retirement Pension Scheme (MRPS) and contractors under MPAO’s service level agreement.
The regulations state certain conditions must be met for pensioners to participate in the homeownership scheme, including being a member of MRPS, having deposits in their retirement savings account, being under the age of 60 with the capability to repay the loan before reaching 65, and not being a recipient of retirement benefits.
In the case of a housing loan default, the regulations state that the property used as security for the loan will first be sold off. Should the sale of security fail to repay the loan in full, the remaining will be compensated by the collateralised funds.
The regulations further specify that housing loans under the scheme will be provided strictly for residential use. The scheme also offers joint loans for two or more members of MRPS.
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