Hiyaavehi housing loans set to begin in July

The government will begin issuing Hiyaavehi housing loans in July, according to Minister of Construction, Housing and Infrastructure Dr Abdulla Muththalib.
Speaking in parliament on Wednesday, the minister said the ministry is finalizing agreements with financial institutions. Once signed, loan evaluations will be carried out through these banks and eligible applicants will receive their financing.

The Hiyaavehi loan scheme was introduced late last year under President Dr Mohamed Muizzu’s pledge to support housing development with low-interest financing. Loans will be provided at a five percent interest rate.
A total of 2,256 people applied for the scheme before the deadline. The loans are available in three categories based on location.
Applicants from all islands can apply for up to MVR 1 million. Those in cities and urban centres can receive up to MVR 3 million, while people living in the Greater Male' area are eligible for up to MVR 6 million.

The Ministry of Housing confirmed that the highest number of applications came from the MVR 1 million category with 1,329 applications. The cities category received 586 applications and the Greater Male' category received 341.
The scheme is being implemented with Bank of Maldives, HDFC and Maldives Islamic Bank. Loans will be offered with a 5 to 10 percent equity requirement, except for the MVR 1 million category which does not require any equity.

All loans come with a 25-year repayment period. MVR 1 billion has been allocated for the Hiyaavehi scheme in this year’s state budget.