Maldives Monetary Authority's Executive Director Mariyam Najeela confirms the works underway of launching a new loan scheme to purchase housing or real estate - which according to the executive would incur a low interest rate and comes under affordable price schemes.
A regulatory act has been formed for the affordable loan scheme by central bank - which cites that banks and financial institutes issuing loans must participate. Additionally such financial institutes and banks alike should settle a 10% to the scheme out of the earnings from loan payments and debt collections.
Down payments and interest rate
- 20% down payment incurs 5% interest
- 10% down payment incurs 5.5% interest
- 5% down payment incurs 6% interest
According to the regulations under the housing loan scheme individuals can extract loans if the guarantor is a registered scheme or Maldives Retirement Pension Scheme - which is assumed as a down payment or equity investment - according to the licensing authority.
The housing loan scheme is structured to bar any increase in the settlement rate for the first 10 years while loans are issued to a settlement period of 25 years. The scheme will issue loans between MVR 1 million to 2 million.
The scheme allows the loan recipient to settle an MVR 2 million worth loan through an approximate MVR 12,000 per month.
