244 people disbursed housing loans under ‘Hiyaavehi’ financing scheme

State Minister for Housing Ahmed Nazim Mohamed states 244 individuals have been disbursed loans through the ‘Hiyaavehi’ low-interest housing finance scheme, while a further 629 approved applicants are expected to receive funding within the coming month.

Speaking on PSM’s ‘Raajje Miadhu program, State Minister Nazim said that, of the 2,256 applications submitted by April 30 last year, 891 had been approved following the completion of various stages of assessment. He added that the government intends to complete the disbursement of funds to all successful applicants by the end of this year.

"Efforts are underway to release funds within the next month to the remaining 629 individuals who have been selected but have yet to receive their loans. Our target is to conclude disbursements for all 891 approved applicants before the year ends," he said.

Nazim attributed the delays primarily to the considerable time required to establish the policies and procedures governing loan disbursements. He explained that the Ministry, participating banks, and applicants had to work together to resolve issues including building plans exceeding the permitted 20 percent commercial-use limit and Bill of Quantities (BOQ) estimates exceeding the approved loan amounts.

The Hiyaavehi scheme provides financing under three main categories:

• Rahvehi: Financing of up to MVR 1 million for residents of all islands, with 363 applications approved
• Saharu: Financing of up to MVR 3 million for designated urban areas, with 438 applications approved
• Fahi Male’: Financing ranging from MVR 6 million to MVR 10 million for the Greater Male’ area, with 40 applications approved

Implemented in partnership with the Bank of Maldives (BML), Housing Development Financing Corporation (HDFC), and Maldives Islamic Bank (MIB), the Shariah-compliant scheme carries a five percent profit rate and offers repayment periods of up to 25 years. The Rahvehi category does not require equity, while the Saharu and Fahi Male’ categories require equity contributions of five percent and 10 percent, respectively.

Highlighting the progress of the program, which has been structured to disburse MVR 2 billion annually, State Minister Nazim also announced that another housing initiative of a similar nature is expected to be launched within the next two months.