Gov’t Launches ‘Hiyaavahi’ Finance Scheme for Home Construction Loans

President Dr. Mohamed Muizzu officially launched the ‘Hiyaavahi’ finance scheme, offering home construction loans at a competitive interest rate of 5%. 

The scheme is being implemented in collaboration with three financial institutions: the Housing Development Finance Corporation (HDFC), the Bank of Maldives (BML), and the Maldives Islamic Bank (MIB).

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President Dr @MMuizzu attends “Hiyaavahi Finance Scheme” launching ceremony. Under this scheme, loans will be issued at an interest rate capped at 5 percent. This aligns with the President’s pledge to issue housing loans at a low interest rate. pic.twitter.com/s9mzu6SZ1v— The President’s Office (@presidencymv) November 5, 2024

During the launch event, today, Muizzu announced that the scheme would offer loans in three categories:

• Atolls: Up to MVR 1 million will be available for home construction in non-urban islands, with financing provided by HDFC and no equity required.
• Urban Centres: Loans of up to MVR 3 million will be offered for homes in designated urban areas, facilitated by BML and MIB.
• Greater Malé Area: Borrowers can access loans of up to MVR 6 million for home construction in the Greater Malé Area, again through BML and MIB.

The government emphasised that the ‘Hiyaavahi’ scheme aims to assist individuals facing financial challenges in commencing or completing their home construction projects. Additionally, it seeks to optimise land use in the densely populated Malé City by encouraging the amalgamation of smaller plots.

For applicants interested in consolidating two or more plots for their home construction, the government will provide an additional MVR 1 million in financing for each extra plot combined.

Housing Minister Dr. Ali Haidar, who also spoke at the launch, indicated that detailed policies and eligibility criteria would be published in the Government Gazette by the end of the week. Applications for loans must be submitted via the Hiyaavehi Portal.

The government has set an ambitious target of issuing up to MVR 2 billion in loans annually under the scheme, with hopes that it will enable families to build homes and enhance their quality of life.