The government has sanctioned over USD 58 million for disbursement for the newly launched "Hiyaavahi Finance Scheme," President Dr Mohamed Muizzu has announced.
The initiative, introduced on 24 November 2024, is designed to provide a crucial financial lifeline to citizens struggling to build or own their homes. The scheme offers soft loans ranging from USD 64,850 to USD 389,105 at a highly subsidised profit rate of just five percent under Islamic financing principles, with a generous repayment period of 25 years.
The programme has seen substantial public interest, with the President revealing that 2,256 applications have been submitted since its launch. To date, 821 successful applicants have been forwarded to partnering banks for the final disbursement of loans, with a total allocation of USD 58.4 million already earmarked for these beneficiaries.
Demonstrating a long-term commitment to housing development, President Muizzu had announced that up to USD 64.9 million will be allocated annually to sustain the Hiyaavahi Scheme.
Eligibility for the scheme is broad, covering residents in the greater Male’ area, urban centres, and islands. It is not limited to new construction—financial assistance can also be sought for the purchase of existing homes, new construction and essential renovations.
This multifaceted approach is expected to provide profound relief, particularly for the many who own land but have been unable to proceed with construction due to financial constraints.