Minister of Housing and Infrastructure Dr Mohamed Muizzu revealed that President Abdulla Yameen Abdul Gayoom has decided to decrease interest rate for social housing loans to six percent on Thursday.
At a special ceremony held to inaugurate the Vilimale two project named "Hiyaa Accomplishment", Dr Muizzu said that President Yameen has come to this decision after getting feedback from the public.
The housing minister spoke about how home equity loan rate is at 30 percent now and with that can be decreased to 10 percent in social housing loans by dropping interest rates.
Currently, interest rates of housing loans are between 14 and 11 percent.
Minister highlighted that once interest rates decrease, it would take a huge load off of those who have land plots in Male.
Furthermore, Dr Muizzu said that the President indents to change the current regulations that dictate that only land plots can be mortgaged for housing loans. With the new amendments that the President has in mind, people can mortgage mobile goods as well.
The social housing flats being developed under Hiyaa project will be completed by April 2019 as per the Ministry.