BML launches “Hiyavehi” financing program

Bank of Maldives (BML) has launched a loan scheme under the government's “Hiyavehi” financing program to provide housing at low interest rates.

The bank confirmed in a statement that it has already started approving projects and issuing loans under the Hiyavehi scheme. This government-subsidized program is designed to offer housing construction financing at the country's lowest rate of 5 percent.

“As the largest bank in the country and as the national bank, BML is a responsible bank that is connected to the lives of every citizen of this country, and it is its responsibility to support projects that benefit the people,” said CEO and Managing Director Mohamed Shareef in a statement.

"The growth of the bank is not separate from the growth of the country. The real scenario is that the health and growth of BML is linked to the Maldives economy. We decided it is an important national project, so our input is necessary."

BML reported that it is already processing more than 1,400 applications for financing under the scheme. Applicants can check their status through the Housing Portal.

In addition to BML, the government has decided to provide this financing through the Maldives Islamic Bank (MIB) and the Housing Development Finance Corporation (HDFC).

A total of 2,256 people have applied to the Housing Ministry for financing under the Hiyavehi Financing Scheme, across three loan categories:

Under the "Hiyavehi" scheme, financing is provided with an equity rate ranging from 0 to 10 percent. While all participants have 25 years to repay, those taking the MVR 1 million loan (Atolls) will not have to pay any equity. However, those taking financing for houses in urban areas must provide 5 percent equity, and those taking loans for the Malé area must provide 10 percent equity.

The Hiyavehi Finance Scheme was introduced late last year to fulfill President Dr. Mohamed Muizzu's presidential promise to issue low-interest loans for new construction, renovation, and the completion of unfinished works. The state budget has allocated MVR 1 billion for this loan program this year.