The Government is preparing to launch a new financial assistance programme to help people struggling to secure the equity needed to build homes on their own land or purchase flats.

State Minister for Housing Ahmed Nazim said the lack of funds for equity payments is one of the biggest challenges faced by people seeking housing loans from banks.

He said the Government is finalising a financing programme with four banks, under which the Government would provide up to MVR 200,000 as equity to enable applicants to secure loans of up to MVR 1 million.

The Government aims to sign agreements with the banks and open the scheme for applications by November this year.

Nazim also said the previously introduced Hiyaa Vehi Financing Scheme had received strong interest, with MVR 1.1 billion allocated for the programme.

In addition, the Government plans to provide financial assistance under an affordable home ownership model to make home ownership more accessible outside social housing programmes.