MVR 989 million in loans have been approved under the ‘Hiyaavahi’ finance scheme according to Housing Minister Dr. Abdulla Muthalib.
The subsidized Hiyaavehi scheme offers home construction loans at 5 percent interest rate – the lowest in the country.
In an appearance on Public Service Media (PSM)’s ‘Raajje Miadhu’ show on Tuesday night, Muthalib said that MVR 989 million in loans have been approved and are awaiting disbursement.
Muthalib said that the loans will be disbursed by the Bank of Maldives (BML) as the paperwork are done.
“The government cannot intervene into this much and dictate who to give the loan to or who not to give the loan to because this is disbursed by the bank. Therefore, once the bank makes the most convenient arrangement for the applicant in line with its regulations, we will be proceeding by lowering the equity and the property rate,” he said.
The benefits available under the Hiyaavehi scheme includes:
An extended repayment tenor of 25 years with an 18-month grace period
A requirement of 20% equity, which can be contributed by the customer or the government
The property under construction serves as the sole collateral
President Dr. Mohamed Muizzu has previously said he plans on allocating around MVR 1 billion from the state budget each year for the scheme.
He has pledged to ensure housing for all Maldivian citizens above the age of 18 by the end of his term.