Maldives looks to cut interest rate on home construction loans

In a bid to resolve the housing shortage in the Maldives, housing minister Athifa Shukoor and governor Ahmed Naseer met on Tuesday to discuss the possibility of offering lower interest rates on home construction loans.

Housing ministry said the discussions centered around lowering interest on home construction loans to five or six percent for personal housing projects in the islands.

However, the ministry did not reveal any further details.

Presently, the country's main Bank of Maldives (BML) offers housing construction loans at an interest rate of 11.5 percent.

Public has long bemoaned the high interest rate on construction loans and as a major factor contributing to the housing shortage and skyrocketing rent especially in the capital Male.

Lowering the interest rate on housing construction loans remains one of the key electoral pledges of president Ibrahim Mohamed Solih.