President Ibrahim Mohamed Solih has revealed the government is considering to increase the amounts issued under the Affordable Housing Loan Scheme introduced earlier this month.
The housing loan scheme, which targets people from the atolls, was initiated to encourage people to develop their homes across the Maldives. The loans are to be issued at a 6% interest rate with a repayment period of 15 to 20 years. The loans are to be disbursed from the Housing Development Finance Corporation (HDFC).
As per the announcement, the loans are capped at around USD 45,000. However, speaking at a press conference on June 29, President Solih said the government is considering an increase to the amounts that can be issued under the loan scheme.
The loans can be utilised for a new building, renovation, or completion of an ongoing construction project. Each loan application requires a minimum of two individuals and it covers 80% of the total cost of the project. The remaining 20% of the project must be borne by the project owner and it does not require to be savings in a bank.