Govt launches ‘Hiyaavahi’ scheme; offers home construction loans at 5% interest

President Dr. Mohamed Muizzu on Tuesday launched the ‘Hiyaavahi’ finance scheme – a scheme that offers home construction loans at 5 percent interest rate.

The finance scheme was launched in line with President Muizzu’s electoral pledge to introduce home construction loans at a low interest rate.

The scheme is being run in partnership with three banks. They are:

• Housing Development Finance Corporation (HDFC)
• Bank of Maldives (BML)
• Maldives Islamic Bank (MIB)

Loans will be issued in three categories under this scheme. They are:

• Atolls: Loans of up to MVR 1 million will be issued to build homes in islands under this category. The loans will be issued through HDFC and does not require equity.
• Urban Centers: Loans of up to MVR 3 million will be issued to build homes in islands considered urban centers under this category. The loans will be issued through BML and MIB.
• Greater Male’ Area: Loans of up to MVR 6 million will be issued to build homes in the Greater Male’ Area. The loans will be issued through BML and MIB.

According to the government, the purpose of the finance scheme is to support people who are unable to start building homes or complete building homes due to financial constraints.

It also seeks to support the construction of homes by combining small plots of land in the congested Male’ City.

According to the government, individuals who apply for loans to construct homes by combining two or more plots can secure an additional MVR 1 million in financing for each additional plot.

Speaking during Tuesday’s ceremony, Housing Minister Dr. Ali Haidar said that policies and eligibility criteria for loans will be publicized via the Government Gazette before the end of the week.

Loan applications must be submitted through the Hiyaavehi Portal.

According to the government, up to MVR 2 billion in loans will be issued under the scheme each year.

Haidar said the government hopes the scheme will allow families the opportunity to build homes and improve the quality of life.