Main opposition MDP’s North Galolhu MP Mohamed Ibrahim (Kudoo) has written a President Dr. Mohamed Muizzu on Wednesday, urging action to resolve the challenges faced by the public in obtaining ‘Hiyaavehi’ housing loans.
Introducing a soft loan scheme for housing with interest rates not exceeding five percent is an electoral pledge of President Dr. Mohamed Muizzu.
The ‘Hiyaavehi’ loan scheme was introduced on November 5th, 2024, under this pledge.
The scheme is being run in partnership with three banks. They are:
Housing Development Finance Corporation (HDFC)
Bank of Maldives (BML)
Maldives Islamic Bank (MIB)
In his letter, Kudoo underscored that there are no special conditions when obtaining the loan, adding that banks are granting it in accordance with standard policies applied for other loans.
In this regard, he pointed out that applicants are considered ineligible for the loan if their income falls below 40 percent of loan repayment amount.
As an example, he explained that for a MVR 6 million loan at a five percent interest rate over 25 years, the monthly repayment would amount to MVR 35,000.
Furthermore, he emphasized that the requirement stipulating that 80 percent of homes built under the loan must be used for residential purposes prevents borrowers from renting out their properties to generate income for loan repayment.
He also raised concerns over many members of the general public being ineligible for the loan because the national bank, Bank of Maldives (BML) provides ‘Hiyaavehi’ loans in line with standard policies applied for other loans.
As such, he urged the President to take these issues into consideration and introduced relaxed requirements for the loans.
The Hiyaavehi scheme is designed to provide the lowest housing loan rate in the Maldives. Key features include:
A loan repayment period of 25 years, including an 18-month grace period  
20 percent equity, which can be provided by the customer or through government support  
No mortgage required except for the building site
Loans will be issued in three categories under this scheme. They are:
Atolls: Loans of up to MVR 1 million will be issued to build homes in islands under this category. The loans will be issued through HDFC and does not require equity.
Urban Centers: Loans of up to MVR 3 million will be issued to build homes in islands considered urban centers under this category. The loans will be issued through BML and MIB.
Greater Male’ Area: Loans of up to MVR 6 million will be issued to build homes in the Greater Male’ Area. The loans will be issued through BML and MIB.