The Maldives Monetary Authority (MMA) has launched the Inclusive National Affordable Housing Scheme, a new initiative aimed at providing long-term affordable housing finance to Maldivians through the country’s banking system.
Formalised under the recently gazetted regulations, the scheme establishes a dedicated fund contributed to by all commercial banks operating in the Maldives. The fund will operate for five years and focus on providing financing for the purchase of homes within the Malé region.
According to the MMA, each participating bank must allocate between 10 and 15 percent of its total loans and debt portfolio to the scheme. The fund will be managed by a financial institution appointed by the central bank, which will oversee its administration and disbursement.
The scheme is designed to assist first-time homebuyers and non-homeowners by offering two distinct types of financing: Type A and Type B facilities. Type A operates on a lease-to-own model, charging an annual interest rate of 5 percent without requiring an equity contribution from borrowers. Type B functions as an end-user financing facility, with an annual interest rate of 6 percent and a 5 percent equity contribution required from applicants.
All financing under the scheme will have a minimum tenure of 25 years, although shorter repayment periods can be arranged at the borrower’s request. Profits from the financing facilities will be returned to the participating banks through the administering financial institution, while the MMA will also provide incentives to banks and operators supporting the scheme.
The Inclusive National Affordable Housing Scheme aligns with the MMA’s broader goal of promoting financial inclusion and stability in the housing market, while ensuring that affordable financing options are available to individuals and families seeking to purchase homes in the Malé area.
