Bank of Maldives (BML) has recently announced an extension to the repayment period for new home buyers’ loans and financing. As of today, homebuyers will have the option to repay their loans over a 25-year period, an increase from the previous 20-year term.
The decision to extend the repayment period comes as part of BML’s effort to provide more flexibility to homebuyers and ease the burden of loan repayment. Moreover, the Bank has reduced the interest rate on home loans and financing to 9 per cent, the lowest rate in the country, down from the previous rate of 10 per cent in 2021.
Carl Stumka, the CEO and Managing Director of BML, highlighted that the extension of the grace period will be particularly advantageous for homebuyers. The new grace period extension is set at 24 months, offering borrowers additional time to manage their finances before starting their loan repayments.
The eligibility criteria for the home purchase loan are inclusive, targeting individuals between the ages of 18 and 60 with a stable income. Applicants also have the option to apply for the loan individually or jointly with a co-applicant.
BML’s home purchase loan and Islamic home purchase financing options are available at a competitive interest rate of 9 per cent, with a requirement of 20 per cent equity. Additionally, existing homeowners can also benefit from this facility by using it to purchase additional properties.