"The Hiyaavahi Scheme will provide funds at five percent service charge to construct homes across the country," Haidar said.
Minister of Housing, Land and Urban Development Dr Ali Haidar Ahmed has said that the 'Hiyaavahi Financing Scheme' introduced by the government will provide housing solutions for many persons currently in need.
In a ceremony held at the Islamic Center today, Haidar said that the government places topmost priority on securing housing for those in need.
The Hiyaavahi Scheme, he said, will be proceeded in three different categories. Details of the scheme are to be published in the gazette within the week.
Next year's budget places high priority on housing, with MVR 4.8 billion allocated for the cause. This includes MVR 1 billion for housing loans.
"The Hiyaavahi Scheme will provide funds at five percent service charge to construct homes across the country," he said.
- MVR 1 million scheme for all islands
- MVR 3 million scheme for urban areas
- MVR 6 million scheme for Male' region
The loan repayment is to be completed within 25 years. Those taking on the MVR 1 million scheme do not have to pay any amount as equity. However, those taking loans for urban areas have an equity of five percent, while those in Male' region have to keep an equity of 10 percent.
"Loans for islands do not have to pay any equities. But to align with Shariah principles, a nominal contribution has to be paid. As such, in accordance with the prices that will be published by the ministry, a fee will be taken to own government land," the Minister said.
Haidar said that in the case of loans for Male' region, priority will be given for those who intend to build houses through merging small plots of lands. As such, land smaller than 600 ft can be merged and built upon.
"For those, in addition to the MVR 6 million, MVR 1 million will be granted for each land plot that is added. The highest amount that will be issued in this manner is MVR 10 million," Haidar said.
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