Minister of National Planning, Housing, and Infrastructure Mohamed Aslam has revealed over 200 individuals have requested the Gedhoruveriya Loan Scheme.
The loan scheme aims to provide assistance to island residents to build or renovate their homes with a 6% interest rate. The government introduced the loan scheme on June 14 to allow individuals to build homes and live in their residential islands.
Speaking to PSM News, Minister Aslam said the government expects to keep providing the loan schemes without an end date. The minister said the government is continuing its work to determine the islands that are in need of housing. He said currently there are 50 such islands and that the government aims to build housing units in islands that have abundant land and build flats in other islands.
He said applicants will receive a loan of up to USD 45,000 as part of the scheme to be repaid within 15-20 years. He added that only the house being built with the loan will be mortgaged and that applicants will receive a grace period of 12-15 months to build the house.
Applicants are also required to have registered land before they can be approved and are required to have been living on the island for at least three years. The government will also prioritise married couples and single parents for approval.
The loan scheme is under the management of the Housing Development Finance Corporation (HDFC) but the applications will be approved by a joint committee of HDFC and the housing ministry.