MIB Partners with Housing Ministry for 'Hiyaavehi' Financing Scheme

Maldives Islamic Bank (MIB) has signed a Memorandum of Understanding (MoU) with the Housing Ministry to become a key partner in the ‘Hiyaavehi’ financing scheme, aimed at providing affordable housing loans to Maldivians. The MoU was signed in a ceremony at the Housing Ministry by Minister Dr. Ali Haidar and MIB CEO Mufaddal Idris Khumri.
Speaking at the event, Minister Haidar emphasized the significance of MIB’s involvement in the soft loan scheme announced by President Dr. Mohamed Muizzu. He explained that MIB will work alongside the Housing Development Finance Corporation (HDFC) to offer these loans across the nation.
“It is a pledge of the President to introduce a long-term soft loan scheme with an interest rate of five percent or even lower,” Minister Haidar noted. This initiative aims to support landowners who lack the financial means to construct homes or afford commercial loans.
The ‘Hiyaavehi’ financing scheme is part of President Muizzu’s broader vision to make home ownership more accessible to Maldivians. During a campaign event for the parliamentary elections in March, President Muizzu highlighted the urgent need for such a scheme. He pointed out that many people in both Male’ and the atolls own land but struggle to secure the necessary funds to build homes due to high commercial loan rates.
The new financing scheme seeks to address this issue by offering loans at lower interest rates, in line with Islamic banking principles. This initiative is designed to alleviate the financial burden on landowners and enable them to build their homes without resorting to high-interest commercial loans.
CEO Mufaddal Idris Khumri expressed MIB’s commitment to the scheme, stating that the bank is dedicated to supporting the government’s efforts to provide affordable housing solutions. He highlighted that MIB’s participation in the ‘Hiyaavehi’ financing scheme aligns with the bank’s mission to offer financial services that comply with Islamic principles while meeting the needs of the community.
The partnership between MIB and the Housing Ministry represents a significant step towards fulfilling President Muizzu’s promise of making home construction more accessible for Maldivians. By collaborating with HDFC, MIB aims to provide soft loans that will enable more people to realize their dream of owning a home.
The ‘Hiyaavehi’ scheme is expected to have a positive impact on the housing sector, boosting economic growth and improving living standards across the Maldives. With MIB’s expertise in Islamic banking and HDFC’s experience in housing finance, the scheme is poised to offer sustainable and affordable housing solutions for many Maldivians.
In conclusion, the MoU between Maldives Islamic Bank and the Housing Ministry marks a crucial milestone in the government’s efforts to provide affordable housing. This partnership is a testament to the commitment of both MIB and the government to address the housing needs of the population and support landowners in building their homes with financial ease and security.