President says equity-financing scheme will ease the 5% requirement for housing loans

President Dr. Mohamed Muizzu has said that a scheme is being developed to assist people in paying the equity required when taking out loans to build their own homes. 

The President first announced on June 29 that the government was working to provide equity financing for housing, noting that efforts were underway to strengthen the Housing Trust Fund and extend equity support to applicants. Those who receive this assistance will be able to more easily facilitate the process of obtaining bank loans, he said.

During Thursday’s public Rayyithunge Adu program, a participant told the President that he had received a plot of land under the second phase of Hulhumale' and highlighted the difficulties of securing a loan to build on it. Responding to the concern, the President said a special scheme is being formulated to provide relief for the five-percent equity component required by banks.

“We are working on a scheme for it, and we are looking to finish it as soon as possible, so that we can start giving it to as many people as possible,” he said. He added that funds have already been allocated to the Housing Trust Fund. “This is not a loan. The government is giving an equity component that does not have to be repaid,” he said.

The President noted that while the scheme will provide assistance, priority will be given to those who have not received housing under any government program.

Under the second phase of the Binveriyaa scheme, land will be handed over to owners in October 2024. A total of 18,955 people were deemed eligible, with 9,003 plots allocated from Hulhumale', Gulhifalhu and Giraavaru. Although land has been allotted for some time, many recipients say they have been unable to utilize it due to various constraints.