The Ministry of Housing, Land, and Urban Development has signed an agreement with the Housing Development Finance Corporation (HDFC) to offer low-interest loans for housing construction, in line with President Dr. Mohamed Muizzu's commitment. Minister Ali Haidar Ahmed and the new Managing Director of HDFC, Ahmed Zeenad, signed the agreement of the venture.
This initiative, named the "Hiyaavehi Finance Scheme," aims to provide financial support for the construction of individual homes. Minister Ali Haidar provided an overview of the scheme, highlighting President Dr. Muizzu's pledge to offer low-interest loans. He outlined two categories for loan distribution, with one targeting individuals in Male' City and other areas designated by President for development as urban centres and another for residents of other islands or regions.
Minister Haidar explained that individuals owning land in Male' City and urban centers can receive loans of up to USD 195 thousand, with a repayment period of 25 years. Meanwhile, those in other areas are eligible for loans of USD 65 thousand under the same repayment terms.
He emphasised the enhancements made to the loan schemes compared to the previous administration, noting an increase in the maximum loan amount from USD 45 thousand to USD 65 thousand, a reduction in the interest rate from 6% to 5%, and an extension of the repayment period from 20 to 25 years.
The Minister announced that priority would be given to individuals with land plots in urban centers and areas outside Male' City for loan disbursement. Loan applications will soon be open for residents of urban centers, accessible through the Ministry of Housing's portal. After a screening process conducted by HDFC, eligible applicants will receive the loans.
President Dr. Muizzu's initiative to provide loans to landowners aims to alleviate financial barriers to home construction, offering support to individuals in need.