The Government of the Maldives has launched the Affordable Housing Loan Scheme as part of the wider housing policy of the administration.
Speaking to the public in a virtual event, Minister of National Planning, Housing and Infrastructure Mohamed Aslam revealed it is the first loan scheme introduced with the lowest interest of 6% for residents living outside the Greater Male' Region. The housing minister added it is a loan introduced with half the percent of interest compared to previously issued loans in the Maldives. He further noted the importance of affordable housing loan schemes for people residing in outer atolls, adding one main aim of the loan scheme is to encourage citizens living in the Greater Male' Region to reside in the native islands.
The housing loan scheme was initiated to encourage people to develop their homes across the Maldives. For the residents outside the Greater Malé Region, the loans will be issued at a 6% interest rate with a repayment period of 15 to 20 years. The loans are to be disbursed from the Housing Development Finance Corporation (HDFC).
The loans capped at around USD 45,000 can be utilised for a new building, renovation, or completion of an ongoing construction project. Each loan application requires a minimum of two individuals and it covers 80% of the total cost of the project. The remaining 20% of the project must be borne by the project owner and it does not require to be savings in a bank.
The loan scheme allows a repayment period of up to 20 years.