Bank of Maldives (BML) has on Sunday begun issuing loans with revised interest rates. Interest rates of housing loans including Home Loan, Home Construction Loan and Real Estate Loan have been reduced by 2% and interest rates of personal loans by 6%.
BML said that with the revised loan rates, the wait by clients for loans will be lessened.
BML CEO and MD Andrew Healy said that the changes were made to allow customers to reap benefits from the bank’s improved financial situation.
Interest rates of housing loans including Home Loan, Home Construction Loan and Real Estate Loan have been reduced by 2% and interest rates of personal loans by 6%. Both loans are to be paid back over a period of 20 years, which is the longest period available for loans.
Rates for small loans issued under ‘Lui Express’ have been conditionally reduced to 7.5% if the customers place in a mortgage.
Speaking on the changes, Healy said the changes to the rates was a source of satisfaction for the bank and will benefit many.
“We are really delighted to implement these interest rate reductions which will hugely benefit tens of thousands of individuals and families. Now that our financial position is stronger, we are giving back to our customers and the community by making the cost of borrowing more affordable. We are helping people get on the property ladder. To educate their children. To improve their livelihoods. For example, the reduced interest rate for an average home construction loan could lead to a saving of almost MVR 2 million over the life of the loan. This will make a real difference and we are delighted to be able to make this difference,” Healy said.