Government has officially launched the ‘Hiyaavahi’ finance scheme on Tuesday, a programme designed to offer affordable home construction loans at a 5 percent interest rate. The scheme aims to address housing needs by providing accessible financing for home-building projects across the Maldives.
In collaboration with Housing Development Finance Corporation (HDFC), Bank of Maldives (BML), and Maldives Islamic Bank (MIB), the scheme offers loans in three categories, targeting different regions with tailored loan caps.
For the atolls, loans up to MVR 1 million will be available for island-based construction projects through HDFC. Notably, these loans do not require equity from applicants. In urban centres, designated as larger population hubs outside the capital, loans of up to MVR 3 million will be offered through BML and MIB. For the Greater Male’ Area, loans can reach up to MVR 6 million and will also be issued through BML and MIB.
An additional feature of the scheme aims to support efforts in Male’ City to combine smaller plots into larger, more functional land spaces. Applicants who merge two or more plots will be eligible for an extra MVR 1 million in financing per additional plot, which the government hopes will encourage a more efficient use of land in the densely populated capital.
Housing Minister Dr. Ali Haidar, speaking at the launch event, announced that the government will publish detailed policies and eligibility criteria on the Government Gazette by the end of the week. Loan applications will be processed through the Hiyaavehi Portal.
The government has allocated up to MVR 2 billion annually for the scheme, which is expected to provide families with the resources to build secure homes, ultimately enhancing their quality of life.
