MIB signs on as partner for ‘Hiyaavehi’ financing scheme

Maldives Islamic Bank (MIB) has signed a Memorandum of Understanding (MoU) with the Housing Ministry to come aboard as a partner of the ‘Hiyaavehi’ financing scheme.

The MoU was signed by Minister Dr. Ali Haidar on behalf of the Housing Ministry and CEO Mufaddal Idris Khumri on behalf of MIB during a special ceremony held at the Housing Ministry.

Speaking at the ceremony, Minister Haidar said MIB is signing on to become a partner of the soft loan scheme announced by President Dr. Mohamed Muizzu.

In this regard, he detailed that the bank will collaborate with the Housing Development Finance Corporation (HDFC) to provide soft loans nationwide.

“It is a pledge of the President to introduce a long-term soft loan scheme with an interest of five percent or even lower,” he noted.

Speaking at a campaign event for the parliamentary elections back in March, President Muizzu said soft loan applications for home construction will be announced very soon.

Back then, the President stressed that people in both Male’ area and the atolls owned land, but lacked the financial capacity to build homes or afford commercial loans.

Henceforth, he said the new financing scheme is aimed at assisting people who own land, but do not have the financial capacity to build homes via loans at a lower interest rate and in compliance with Islamic banking principles.