Mohamed Aslam, the housing minister, stated that over 200 people had applied for the government’s Gedhoruveriya Loan Scheme.
The government announced the affordable loan plan on June 14 to allow citizens to build homes and live on their residential islands. Under the loan scheme, island inhabitants would receive financial aid to build or refurbish their homes at a 6% interest rate.
Aslam stated that the government expects to continue offering loans under the program indefinitely, adding that the government is continuing its efforts to identify the islands in need of homes. He stated that there are now 50 such islands and that the government intends to develop dwelling units on islands with plenty of land and flats on other islands.
He stated that candidates will receive a loan of up to MVR 700,000 as part of the plan, which must be repaid over a period of 15-20 years. The housing minister went on to say that just the house being built with the loan will be mortgaged, and that applicants will have 12-15 months to finish the house.
Applicants must also have registered land and have lived on the island for at least three years before they may be authorised, with married couples and single parents receiving precedence.
The Housing Development Finance Corporation (HDFC) will oversee the loan programme, although applications will be reviewed by a combined committee of the HDFC and the housing ministry.