President Dr. Mohamed Muizzu has launched the Hiyavahi financing scheme which provides housing loans at less than five percent interest rate.
The scheme provides loans at an interest rate of five percent with repayment over 25 years and loans will be issued for the first house built by each person.
Speaking at the ceremony, Housing Minister Dr. Ali Haidar said the scheme was introduced by the government to provide easy access to housing.
He said that loan applicants under the scheme should not have any housing provided by the state or registered privately.
"The applicant should not have any private or state-issued housing in his or her name as these facilities are a finance scheme by the government to provide concessions to families for initial housing," Haidar said.
He said the scheme would ensure housing for many people who were deprived of the right due to lack of financial means.
Haidar said the terms, conditions and further details of the scheme will be announced before the end of this week and applications can be submitted through the Hiyavahi portal.
The scheme is open to the entire country and will be divided into three categories. The loan amount under each category varies along with the repayment amount.
Hiyavahi Rahvehi (For all the islands)
- Maximum amount MVR 1 million
- No equity needed
- As a nominal contribution, the price of privatization of land will be charged in accordance with the official prices published by the Ministry
Hiyavahi Saharu (For urban centers)
- Maximum amount MVR 3 million
- Five percent equity
- The total amount allocated should be sufficient to complete the project
Hiyavahi Furamale' (For Greater Male' Region)
- Maximum amount MVR 6 million
- Ten percent equity
- Priority will be given to those who propose to build by combining smaller plots of land
- Land plots smaller than 600 square feet can be combined
- MVR 1 million will be added for each combined plot in addition to MVR 6 million, but the maximum amount is MVR 10 million
Between MVR 2 billion and MVR 5 billion has been included in the proposed state budget for next year to issue loans under the scheme.
