Housing Development Finance Corporation (HDFC) has announced changes brought to the eligibility criteria for the Affordable Housing Loan Scheme.
HDFC stated it has nullified the previous requirement for applicants to have resided in their native island for at least three years. It stated it will proceed with the application process with individuals who were previously rejected for not meeting the requirement after they re-apply for the loan.
The Affordable Housing Loan Scheme was introduced in June last year to allow individuals to build homes and live in their residential islands. The loan scheme aims to provide assistance to island residents to build or renovate their homes with a 6% interest rate.
All applicants will receive a loan of up to USD 45,000 as part of the scheme to be repaid within 15-20 years. Only the houses 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 also 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 will be approved by a joint committee of HDFC and the Ministry of National Planning, Housing and Infrastructure.