The government has unveiled details of two facilities under the 'Hiyaavehi Financing Programme', a nationwide initiative designed to expand access to affordable home construction loans in line with Islamic Shariah principles.
The Hiyaavehi Financing Programme comprises three tailored schemes designed to address diverse regional housing requirements.
The government on Saturday, revealed details of the 'Hiyaavehi Fahimalé' product and the 'Hiyaavehi Saharu' product under the scheme.
Hiyaavehi Fahimalé:
In Malé, the 'Hiyaavehi Fahimalé' scheme extends financing up to USD 3.89 million. Joint applications submitted within Malé may secure between USD 3.89 million and USD 6.48 million, accommodating shared ownership arrangements.
The maximum facility repayment period offered is 25 years. This period will be fixed by the bank issuing the facility, taking into consideration the age of the applicant. Grace period for this facility is a maximum of 18 months while the repayment period shall be calculated excluding this period.
The applicant will be required to make an equity contribution of five to 10 percent for the facility. The land registry must be mortgaged with the bank with a requirement of maximum 15 percent advance payment of the total project cost. The balance will be disbursed on a progressive payment basis, as the project progresses.
Hiyaavehi Saharu:
The 'Hiyaavehi Saharu' scheme grants urban residents access to loans of up to USD 1.95 million.
The maximum facility repayment period offered is 25 years. This period will be fixed by the bank issuing the facility, taking into consideration the age of the applicant. Grace period for this facility is a maximum of 18 months while the repayment period shall be calculated excluding this period.
The applicant will be required to make an equity contribution of five to 10 percent for the facility. The land registry must be mortgaged with the bank with a requirement of maximum 15 percent advance payment of the total project cost. The balance will be disbursed on a progressive payment basis, as the project progresses.
Speaking during the agreement signing ceremony with the Bank of Maldives (BML) to advance the 'Hiyaavehi Financing Programme' on 24 June, Minister of Construction, Housing and Infrastructure, Abdulla Muththalib had said hundreds had applied for the loan before the deadline for applications expired on 31 May 31.
"Now applications have been received for 'Hiyaavehi Rahvehi', which has 1329 applications. 'Hiyaavehi Saharu' has received 586 applications. Then 341 applications have been received for the 'Hiyaavehi Fahimalé' scheme,” he detailed.
The programme, which launched on 8 November 2024, offers Shariah-compliant financing at a competitive profit rate of 5 percent.
The government has earmarked USD 64.9 million in this year's budget to provide financial assistance under the financing scheme. On top of the government funds, banks will dedicate the same amount to take the total financing of the scheme up to USD 129.7 million, President Dr Mohamed Muizzu had said.
President Dr Muizzu had pledged to find a permanent solution to the country’s long standing housing shortage.