The Ministry of Housing and Urban Development has announced that applications for the 'Hiyaavehi' housing loan scheme at a 5 per cent interest rate will be open until April 8, 2020. This scheme, which was initially launched on November 8 last year, now has a set deadline for applications, closing at 11:59 pm on Tuesday, April 8.

The 'Hiyaavehi' financing scheme is part of President Dr Mohamed Muizzu's commitment to improving housing facilities in the Maldives. Under this initiative, the government has established a policy of offering loans at a 5 per cent interest rate through designated banks.

Applicants must submit their applications via the official portal, hiyaavehi.housing.gov.mv, which can be accessed through e-fas. The financial institutions handling the loans under the 'Hiyaavehi Financing Scheme' include Housing Development Finance Corporation (HDFC), Bank of Maldives (BML), and Maldives Islamic Bank (MIB).

The loan scheme offers financial assistance under three main categories. In the Atoll Category, loans up to MVR 1 million will be provided for house construction in the atoll islands. No equity payment is required for this loan, which will be issued through HDFC. In Urban Centres, loans up to MVR 3 million will be granted for housing projects in urban centres through BML and MIB. Under the Furamale’ Category, loans up to MVR 6 million will be available for house construction in the Male’ area. This category aims to support individuals who have not started construction, those needing funds to complete unfinished buildings, and those looking to merge small plots for housing development. Additionally, applicants merging two or more plots of land under 600 square feet can apply for an extra MVR 1 million loan per plot.

The government has prioritised housing in this year’s budget, allocating a total of MVR 2.5 billion. Of this, MVR 1.5 billion is specifically designated for housing loan schemes and housing construction projects.

During the Republic Day celebrations, President Dr Muizzu reaffirmed his commitment to the initiative, stating that MVR 1 billion will be allocated to the shelter scheme in every annual budget. Despite this allocation, the scheme is structured to enable the disbursement of up to MVR 2 billion in loans, ensuring more people can access funding for housing.