The Ministry of National Planning, Housing, and Infrastructure has distributed USD2.9 million to 171 applicants of the Gedhoruveriya loan scheme.
The loan scheme aims to provide assistance to island residents to build or renovate their homes with a 6% interest rate. The government introduced the loan scheme in 2021 to allow individuals to build homes and live on their residential islands.
Applicants will receive a loan of up to USD45,000, or 80% of the project cost, as part of the scheme to be repaid within 15-20 years. Only the house being built with the loan will be mortgaged and applicants will receive a grace period of 12-15 months to build the house. Applicants are required to have registered land before they can be approved and are required to have been living on the island for at least three years. The government will also prioritise married couples and single parents for approval.
The loan scheme is under the management of the Housing Development Finance Corporation (HDFC) but the applications are approved by a joint committee of the HDFC and the planning ministry.