Maldives will offer loans for housing purposes with an interest rate capped at five per cent, which will allow locals to build their houses without borrowing at commercial rates.
Last evening, President Dr. Mohamed Muizzu announced that loans will be facilitated very soon for the construction of houses with interest rates that do not exceed five per cent.
The President made the remarks while speaking at the inauguration ceremony of Male’ City Council member Ahmed Zameer, who will contest for the Machangoalhi Central constituency on the People's National Congress (PNC) ticket in the upcoming parliamentary elections scheduled for the 21st of April.
He pledged to introduce many new changes during last year’s presidential campaign.
One of the most important changes is the establishment of loan schemes with interest rates that do not exceed five per cent.
“We decided to provide affordable loans to homeowners and landowners who are unable to build or borrow at commercial rates”, he said.
One of the loan schemes includes financing the construction of individuals’ private residences.
President Dr. Mohamed Muizzu announced that his government has completed a significant amount of work during its first 100 days and that everything is in place to issue the loans. He also stated that the application process for loans will be opened very soon.
“In collaboration with government ministries, an affordable loan scheme for the construction of houses will be launched very soon”, he said.
He also mentioned that these will be conventional and Islamic finance loans.
President Dr. Mohamed Muizzu elaborated on the implementation of a “Home Completion Loan” that will aim to provide feasible solutions for unfinished properties.
An additional loan scheme will be introduced for old houses that require repairs as well.
“First, we will issue loans for new housing. The work went ahead at full pace and is now nearing completion”, he said.
President Dr. Mohamed Muizzu assured that both the “Home Completion Loan” and “Renovation Loan” will be issued this year, despite their slight delay.
According to him, the loans will be introduced across the Maldives with the aim of addressing the housing crisis.
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