Loans have been disbursed to 244 people under the Hiyaavahi low-interest housing finance scheme, with another 629 expected to receive financing in the coming months, Housing Ministry State Minister Ahmed Nazim Mohamed has said.

The application deadline for the scheme expired on 30 April last year, with 2,256 applications received.

A total of 891 applications have been approved at various stages by banks, applicants and the Housing Ministry.

“Of these, we have now made final preparations to disburse loans to 629 people. Loans have already been disbursed to 244 people. So within the next month or so, we will be able to disburse loans to the remaining 629 people,” Nazim said.

He said all 891 approved applicants are expected to receive their loans by the end of this year.

Nazim said the ministry had to work to ensure applicants met the requirements of the scheme. Under the rules, 20 percent of a building must be allocated for commercial purposes, with the remainder designated as residential space. He said many applicants had not initially proposed projects that met this requirement, resulting in delays while the issue was resolved.

The scheme offers financing under three categories:

Nazim said 40 loans had been approved under the Fahimale’ category, 438 under the City category and 363 under the Rahvehi category.

He described the scheme as a successful initiative and said another similar housing finance programme would be launched within the next two months.

The financing programme is being implemented in partnership with Bank of Maldives, Housing Development Finance Corporation and Maldives Islamic Bank. It offers financing at rates of 5 percent to 10 percent, with a repayment period of up to 25 years.

Borrowers under the Rahvehi category are not required to provide equity. City applicants must provide 5 percent equity, while applicants in Male' must provide 10 percent.

The scheme will provide a total of MVR 1 billion in housing finance, Nazim said.