More than 1,300 applications have been received so far for the 'Hiyaavehi Rahvehi' home construction loan scheme, the Minister of Construction, Housing and Infrastructure, Abdulla Muththalib has revealed.
The 'Hiyaavehi Financing Programme', introduced in November last year - a nationwide initiative designed to expand access to affordable home construction loans in line with Islamic Shariah principles.
The Hiyaavehi Financing Programme comprises three tailored schemes designed to address diverse regional housing requirements. The 'Hiyaavehi Rahvehi' scheme, intended for residents of the outer islands, provides financing of up to USD 0.65 million. The 'Hiyaavehi Saharu' scheme grants urban residents access to loans of up to USD 1.95 million. In Malé, the 'Hiyaavehi Fahimalé' scheme extends financing up to USD 3.89 million. Joint applications submitted within Malé may secure between USD 3.89 million and USD 6.48 million, accommodating shared ownership arrangements.
Speaking during the agreement signing ceremony with the Bank of Maldives (BML) to advance the 'Hiyaavehi Financing Programme', Minister Muththalib said hundreds had applied for the loan before the deadline for applications expired on 31 May 31.
"Now applications have been received for 'Hiyaavehi Rahvehi', which has 1329 applications. 'Hiyaavehi Saharu' has received 586 applications. Then 341 applications have been received for the 'Hiyaavehi Fahimalé' scheme,” he detailed.
The Minister said the applications are currently being reviewed by the Ministry which will then be forwarded to BML.
"I have said that the banks will start the evaluation in July. I cannot say if the loans will be disbursed in July. It is BML's and our aim, to start loan disbursements as soon as possible,” he added.
Signed by the construction ministry and BML, the agreement aims to reinforce support for individuals and families constructing homes on allocated land, particularly within the Malé region. The programme, which launched on 8 November 2024, offers Shariah-compliant financing at a competitive profit rate of 5 percent.
The government has earmarked USD 64.9 million in this year's budget to provide financial assistance under the financing scheme. On top of the government funds, banks will dedicate the same amount to take the total financing of the scheme up to USD 129.7 million, President Dr Mohamed Muizzu had said.
President Dr Muizzu had pledged to find a permanent solution to the country’s long standing housing shortage.