No loans have been issued under the Hiyavehi financing scheme despite President Dr. Mohamed Muizzu announcing that loans will be disbursed starting October 2024.
At the Independence Day ceremony on July 26, 2024, Muizzu assured all Maldivians that housing loans at an interest rate of five percent would be issued starting in October.
"I am announcing here with full confidence that loans with five percent interest will be issued to every citizen in every corner of the country starting October to address the most pressing issue of housing," he said.
However, the Hiyavehi financing scheme to provide housing loans with five percent interest was announced on November 5, 2024.
Speaking at the inauguration ceremony, Muizzu said that next year’s budget includes more than MVR 2 billion for loans under the scheme. But he did not give an exact date for issuing the loans.
"While all these loans are planned to be issued next year, it is a total of more than MVR 2 billion. That will hopefully continue every year," he said.
During his tour of Huvadhu atoll at the start of this year, Muizzu addressed the people of Gaaf Alif Maamendhoo on January 8 and called to make use of the housing loan scheme.
"This is an affordable loan scheme. This is also a loan that fits the Islamic finance model. This scheme will not include anything that is prohibited in our religion. So, make use of this loan scheme. I am advising all the people of Maldives, this is a golden opportunity to build your homes in your lands," he stated.
He further expressed hope that as many people as possible would take advantage of the loan scheme in the future.
"So, this is a scheme that has been launched. Maybe it's not very clear to the people because we haven't been able to market it well. However, I hope that after tonight, all the people of Maldives will understand," he said in Maamendhoo.
The Hiyavehi portal was opened for loan applications in November 2024.
However, multiple sources confirmed to Adhadhu that no loans have been issued under the scheme so far.
Adhadhu can confirm that none of the applications submitted to the Housing Ministry have been forwarded to the Bank of Maldives (BML), Housing Development Finance Corporation (HDFC) and Maldives Islamic Bank (MIB) for evaluation.
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 and does not involve equity.
The scheme is open to the entire country and is divided into three categories. That is MVR 6 million loans for Male' region, MVR 3 million loans for cities and MVR 1 million loans for islands.
