The government has opened the application process to the newly introduced construction loans exclusive to islands on Tuesday.
The "Gedhoruveriyaa" loan scheme, meaning "Homeowners" was introduced by President Ibrahim Mohamed Solih on Monday evening.
Under this scheme, loans up to MVR 700,000 with six percent interest rate will be issued. The maximum repayment period is 20 years.
The loan is being made available through Housing Development Finance Corporation (HDFC). Application forms will be available on their website, spokesperson of the President's Office Mabrook Azeez said in a press conference.
The preset conditions for applying for this loan includes not owning another land besides the one being developed, being a resident of the island they own the land from, and the landowner or their family having lived in the island for a minimum of three years.
This loan will be given to people who wants to build a house in land they already own, or to finish an already started project.
Landowners will be given a 12-15 month grace period to build their homes. The land that is being developed can be mortgaged as well.
A minimum of two parties will have to apply while requesting for a loan. The Gedhoruveriyaa scheme will pay for 80 percent of the project, the reminder would have to paid by the homeowners.