Hiyaavehi Financing: MVR 909 Million in Loans Approved

The Ministry of Housing, Land, and Urban Development has announced that a total of MVR 909 million has been approved for disbursement under the government’s “Hiyaavehi Financing” scheme.

The “Hiyaavehi Financing” scheme is a specialized initiative introduced by the government to provide financial assistance to citizens facing challenges in constructing homes across the Male’ region and the atolls. This program is conducted in collaboration with three local banks, offering financing based on Islamic principles at a 5% profit rate, with a generous repayment period of 25 years.

According to the Ministry, the MVR 909 million approved so far is designated for the construction of residential properties on privately owned land. The Ministry further noted that financing has been officially sanctioned for 23 applicants in the initial phase of the scheme.

The program comprises three distinct schemes tailored to different regional needs:

1. Atoll-Specific Scheme: This scheme is dedicated to housing construction in the islands. It provides financing of up to MVR 1 million through the Housing Development Finance Corporation (HDFC), with the significant advantage of requiring no equity contribution from the applicant.
2. Urban Center Scheme: Specially designed for islands designated as Urban Centers by the government, this scheme offers financial assistance of up to MVR 3 million.
3. Male’ City Region Scheme: This scheme targets the Greater Male’ area, offering loans of up to MVR 6 million. It is aimed at individuals who have been unable to commence construction, those looking to complete unfinished buildings, and residents of Male’ who wish to consolidate small plots of land for joint redevelopment. The schemes for both the Urban Centers and the Male’ region are facilitated through the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB).

Access to adequate housing is a fundamental right guaranteed to every citizen under the Constitution of the Maldives. Consequently, ensuring high-quality and affordable housing for all remains a cornerstone of President Dr. Mohamed Muizzu’s administration policy.