The Housing Development Finance Corporation (HDFC) was tasked last night with implementing the "Hiyavehi Finance Scheme" under the government's pledge to introduce soft loans for housing.
In a statement released after the signing of an MoU, the Housing Ministry said the Hiyavehi finance scheme was devised to be compliant with Islamic financing standards. The interest rate of loans to be issued under the scheme is five percent.
Loans under the Hiyavehi finance scheme are divided into categories, including a special scheme for the Greater Male' Area and other urban centers designated by the current government as well as a special scheme for other islands in the atolls.
The upper limit of loans to be issued for home construction on other islands is MVR 1 million. Up to MVR 3 million will be offered for home construction in the Male' region and urban centers.
Further details about the scheme will be announced in the near future, the Housing Ministry said.
