New Housing Loans Scheme Offers Up to MVR 6 Million

The government of the Maldives has opened applications for small-interest housing loans under the new Hiyaavehi Financing Scheme, designed to assist citizens in building or completing their homes. This initiative is part of President Dr. Mohamed Muizzu's presidential pledge to improve access to housing for all.

Launched last Tuesday, the scheme is open for applications from today until April 2025. It offers loans in three categories: MVR 1 million for all islands, MVR 3 million for urban areas, and MVR 6 million for the capital, Malé. Urban areas are defined as cities, capital islands of each atoll, and densely populated islands.

The loans are provided in partnership with the Bank of Maldives (BML), Housing Development Corporation (HDC), and Maldives Islamic Bank (MIB), with an interest rate of 5%. Applicants can repay their loans over 25 years.

There are also specific equity requirements: no equity is needed for the MVR 1 million category, while 5% equity is required for urban areas and 10% for Malé.

With a total allocation of MVR 4.8 billion for housing, the government has set aside MVR 1 billion specifically for housing loans. This initiative is part of the government's ongoing effort to address the growing demand for affordable housing across the Maldives.