Housing Minister Mohamed Aslam announced that MVR 170 million will be made available for the Gedhoruveriya Housing Loan Scheme, which is intended to assist people on residential islands outside of Male’ City in renovating or building homes.
Minister Aslam told a local news station that the fund could be raised depending on public demand for the loan plan. Minister Aslam stated that the scheme’s goal is to continue to grow in a sustainable manner.
According to the housing minister, a two- or three-bedroom house can be constructed for MVR 700,000 by hiring local island contractors rather than bringing in Malé contractors, which will raise the price.
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.