2,256 applied for Hiyaavehi Financing: Muththalib

Minister of Construction, Housing and Infrastructure Dr. Abdulla Muththalib has announced that the Hiyaavehi Financing Scheme, the low-interest loan scheme offered by Bank of Maldives (BML) for housing currently has 2,256 applicants.

There are three categories within the scheme, which are islands (MVR 1 million loan), cities and urban areas (MVR 3 million loan), and the Greater Male' region (MVR 6 million loan).

During the Housing Ministry's press conference, Minister Muththalib stated that under the scheme, there have been 1,329 applicants for the MVR 1 million loan. The MVR 3 million loan has 586 applicants and the MVR 6 million loan has 341 applicants, stated the minister.

Minister Muththalib stated that the Hiyaavehi Financing Scheme is not a loan given directly to citizens by the government, and that it is a loan provided by the bank. The minister also stated that the Hiyavehi Financing Scheme was introduced late last year, under President Dr Mohamed Muizzu's pledge to facilitate low interest loans to complete housing projects.

As per the minister, the 10 percent loans have been brought down to 5 percent, with concessions having been introduced by the government for equity payments.

"This is a low-interest loan scheme which is subsidized by the government. But, as this is a loan given by the bank, bank regulations will also be included. For example, someone who has taken a loan from the bank but has not paid it back will not be eligible for this loan from the bank," said the minister.

As per Minister Muththalib, 717 loans have been approved as of yet under this scheme, which amounts to MVR 821 million in loans. Minister Muththalib said that he hopes MVR 1 billion in loans will be given out in this current round.

When applying for the Hiyaavehi Financing Scheme, concession arrangements have been made for blueprint submissions. The regulation has been reformed where as time is needed for the blueprint to be approved via Male' City Council, if the blueprint were to have the engineering and architect stamp, it can be submitted for the application process.

The loan will be issued as per the five percent profit rate under the Islamic Financing regulation. Along with the Housing Ministry, the financing scheme will be run in collaboration with BML, HDFC and Maldives Islamic Bank (MIB). Applicants will be granted a 25 year repayment period. Those applying for the MVR 1 million loans do not have to pay any amount as equity.

The loan will also be given out if construction of a house has been halted. Giving  loans at small interest rates for those building houses for the first time or for houses that have been incomplete is a presidential pledge of President Muizzu's.