The Government is preparing to introduce two additional financing programmes to support people who face financial difficulties building or purchasing homes, the Ministry of Infrastructure, Housing and Urban Development has said.
Speaking on PSM News' Raajje Miadhu programme, State Minister for Infrastructure, Housing and Urban Development Ahmed Nazim Mohamed said many people remain unable to build homes because they do not meet the requirements for housing loans.
The Government previously introduced the Hiyaavehi Scheme to address these barriers, drawing a large number of applications. It has since decided to disburse USD 71.3 million under the scheme.
State Minister Nazim said the Government is preparing to introduce two additional financing programmes in collaboration with banks to support home construction. As part of the planned financial assistance, the Government will help people who own land but face difficulties building a home by covering the equity payment required when applying for a bank loan. The equity payment is one of the key requirements set by banks for obtaining a loan.
“The Government will provide the amount required for the equity payment, allowing applicants to obtain financing from banks. Under the scheme, an equity contribution of USD 12,970 will allow applicants to secure loans of up to USD 64,851. We are working to launch the scheme within two months,” State Minister Nazim said.
The Government also plans to assist people who lack the equity required to purchase flats under housing projects in the islands or to buy a housing unit. State Minister Nazim said the Government will provide USD 16,213 towards the required equity payment.
The ministry is working to sign memoranda of understanding (MoUs) with four banks to provide the financial assistance. The Government aims to open the scheme for applications in November.
Alongside these programmes, the Government plans to introduce a separate financing scheme for people purchasing flats under its Affordable Home Ownership Model. The scheme will provide financial assistance to enable people to purchase the properties without entering the social housing scheme.
The financing scheme will apply to the 1,000 housing units currently under development in Hulhumalé Phase III, as well as Affordable Home Ownership Model schemes planned for the atolls.
The Government is also working with the private sector on a 550-unit housing project in Addu and another project in Fuvahmulah. The ministry said this work also forms part of efforts to strengthen private-sector businesses.
Providing financial assistance to people who own land but struggle to build homes, and helping people become homeowners, remains one of the Government's key policies.