The government will start disbursing funds under the Hiyaavahi Financing Scheme within three months after the application deadline of April 8, 2024, according to Housing Minister Dr. Ali Haidhar Ahmed.
The Hiyyavahi Financing Scheme, which provides loans at a profit margin of five percent, was launched by the President. Dr. Mohamed Muizzu, in line with the President’s pledge to issue housing loans at a low interest rate. The application process for the scheme opened on November 8.
In an interview with state media, Minister Haidhar said the evaluation work would start once the application forms are received. The first round of loans will be distributed within three months, he said.
Key features of Hiyaavahi Financing Scheme:
- Hiyaavahi Rahvehi: Low-interest loan scheme to build homes in the atolls. No equity will be required for the loan. The loan is repayable over 25 years at five percent interest and will be issued by the Housing Development Finance Corporation (HDFC).
- Hiyaavahi Saharu: Low-interest loan scheme providing up to MVR 3 million for the construction of homes in urban centers. The loan will be issued at five percent interest and will have a repayment period of 25 years. The loan will be issued through the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB).
- Hiyaavahi Furamale': Low-interest loan scheme providing up to MVR 6 million for home construction in the Male' area. Plots smaller than 600 sq. ft. can be combined with additional small plots, with MVR 1 million added to the loan amount for each additional plot, up to a maximum of MVR 10 million. The loan requires 10 percent equity, carries a 5 percent interest rate, and is repayable over 25 years. It will be provided through BML and MIB.
