The government has announced a new low-interest homeowner’s loan scheme tailored for people living in residential islands outside the capital Male’ City to renovate or construct homes.
In the virtual event to launch the loan scheme last night, President Ibrahim Mohamed Solih said the loan scheme offers financing options at a low interest rate within a reasonable and convenient repayment period. President Solih added that it is part of the government’s grand housing policy, and that housing schemes for residents in the Greater Male’ region is also being discussed.
‘Gedhoruveriya Loan’ scheme can be used to finance construction of a new building, completion of an ongoing project, or just renovation.
The loan scheme offers a maximum financing option of MVR 700,000 with a repayment period of 15 to 20 years. While the interest will be at a mere 6 percent and the building to be used as a mortgage. Moreover, the loan has a generous grace period of 12 to 15 years.
The loan will cover 80 percent of the financial cost of the project and the remaining will need to be funded by the applicant.
The applicant must have a land plot registered under his/her name, must be a resident of the island on which the land is allocated, and must be residing in the island for at least 3 years to be eligible for the loan.
The loan scheme will be managed by Housing Development Finance Corporation (HDFC). However, applications will be approved by a joint credit committee composed of representatives from HDFC and the Housing Ministry.