News Desk
MALE’, Maldives — The Maldives has introduced a low-interest housing loan scheme aimed at addressing housing needs, launched by President Dr. Mohammed Muizzu at a ceremony on Tuesday. Under the scheme, loans with interest rates capped at five percent will be available for home construction across different regions, with a 25-year repayment period. This initiative, a key part of Muizzu’s election promises, is set to prioritize citizens in rural, urban, and metropolitan areas.
Three financial institutions – Housing Development Finance Corporation (HDFC), Bank of Maldives (BML), and Maldives Islamic Bank (MIB) – will oversee the disbursement of the loans, segmented by region. Residents in the atolls are eligible for loans up to MVR 1 million through HDFC, with no equity required. Urban center borrowers may access loans up to MVR 3 million via BML and MIB, while those in the Male’ area can borrow up to MVR 6 million with a 10 percent equity requirement.
Housing Minister Ali Haider emphasized the program’s focus on aiding residents who lack housing or seek to complete unfinished homes. He noted that loans for rural housing will require no equity but will include a nominal fee for land privatization, in line with Sharia compliance.
In line with the government’s commitment to addressing homelessness, the 2025 budget earmarks MVR 4.8 billion for housing initiatives, with MVR 1 billion specifically for housing loans. Detailed guidelines and terms are expected to be published later this week, according to Haider.
