Over MVR 1 billion has been issued under the Hiyaavehi Finance Scheme, designed to provide loans for developing private residential homes.
A social media post shared last Thursday by the Housing Ministry shows that the low-interest loans under this scheme have been issued to 839 individuals, with the total coming to MVR 1,084,573,337.
Details of applications
- 341 applications for Fahimale' - for housing construction in Male' area
- 585 applications for Sahar - for housing construction in urban centres
- 1329 applications for Ravvehi - for housing construction in all other islands
These loans are issued on an Islamic Financing model, with a five percent profit rate. Loan repayment is split over 25 years. Those newly constructing homes are eligible to apply for the loan.
There are loan options to complete construction of residential houses which have had work stalled mid-project as well. With the provision of loans in such cases being a presidential pledge, these loans are facilitated under this financing scheme through BML, HDFC and MIB in collaboration with the Housing Ministry.
Under this scheme, a total of MVR 2 billion is to be issued annually, with MVR 1 billion allocated through the State budget, and the remainder through banks.
