The government has revealed that MVR 1.5 billion will be allocated to carry out construction projects in the atolls in the next year’s budget.
Speaking at the Parliament on Wednesday, Housing Minister Mohamed Aslam said the government previously attempted to construct houses in the atolls by borrowing funds as loans and contracting the projects to different parties. However, the projects could not be carried out in the most effective manner at that time, said Aslam, noting that contractors would not have been able to cover the cost of the project even within twenty years.
Aslam said the Housing Development Finance Corporation (HDFC) will be introducing a special loan scheme this year under which MVR 175 million will be disbursed as loans capped at MVR 700,000 and with a 6% interest rate. The government hopes to increase the loan fund to MVR 500 million within the next year, said Aslam. The loan is targeted for individuals who wish to borrow funds to build or finish construction of their own homes.
