President assures to probe concerns over Hiyaavahi financing scheme

President Dr Mohamed Muizzu, on Thursday night, assured that he would look into concerns raised over the ‘Hiyaavahi Finance’ scheme.

During the ‘Rayyithunge Adu’ program, a participant raised concerns about the scheme, explaining that although it offers financing of up to MVR 1 million for island residents, their application was approved for only MVR 650,000. The individual said they had initially applied for MVR 900,000, believing they could complete the house by contributing personal funds alongside the loan. However, the bank reportedly asked them to reduce the requested amount twice, citing assessments of their salary and expenditure.

The participant further explained that the approved MVR 650,000 was to be disbursed in instalments. The approval was secured only after repeated follow-ups and letters to the Housing Ministry and other government agencies. Although the bank released MVR 114,000 for the foundation, covering the initial structural work, significant challenges remain.

One of the main difficulties highlighted was the requirement to submit building registration documents to access the second instalment. However, building registration can only be obtained once the structure has been roofed.

"The property is already mortgaged. If I reach the limit of the current loan before roofing the house and completing it, I will be unable to apply for additional financing because the property is mortgaged. This creates a major difficulty," the participant explained.

Responding to the concerns, President Muizzu said the issues had not previously been brought to his attention and acknowledged that the scheme’s current implementation did not reflect his original vision.

The President noted that MVR 600,000 was insufficient to complete a house, despite the scheme’s MVR 1 million financing ceiling. He pledged to ask the Ministry to investigate the reasons for the reduced loan approval and explore the possibility of increasing the amount allocated to the applicant.

President Muizzu stressed the importance of finding an appropriate solution to the administrative difficulties associated with the scheme.

The ‘Hiyaavahi Finance’ scheme consists of three categories: the ‘Rahvehi’ Financing Scheme, the ‘Saharu’ Financing Scheme and the ‘Fahi Male’ Financing Scheme.

Under the schemes, ‘Rahvehi’ provides financing of up to MVR 1 million for island residents, while ‘Saharu’ offers up to MVR 3 million for residents of urban centres. The ‘Fahi Male’ scheme provides financing ranging from MVR 6 million to MVR 10 million for joint applications by property co-owners in the Malé area.