Govt. introduces low-interest ‘homeowner’s loan’ for people living in the atolls

Maldivian government has introduced a new low-interest loan scheme directed at people living in residential islands outside the capital who wish to build, complete construction of, or renovate their homes.

The loan scheme is titled ‘Gedhoruveriya Loan’, which translates to Homeowner’s Loan.

In a virtual event to launch the loan scheme on Monday night, President Ibrahim Mohamed Solih said the scheme offers housing loans at a low interest rate and long repayment period.

“This scheme will allow people in need of housing in islands across Maldives to get it done with ease,” he said.

President Solih said the scheme is part of the government’s wider housing policy, and that housing schemes for residents of greater Male’ region is also in progress.

Gedhoruveriya loan scheme can be utilized for a new building, completion of construction of an ongoing project, or renovation.

Details:

• Maximum MVR 700,000
• Repayment period of 15-20 years
• 6 percent interest
• Mortgage limited to property under development
• Grace period of 12-15 years
• Minimum of two individuals required per application

The loan covers 80 percent of the total cost of the project. The remaining 20 percent needs to be put up by the applicant. It can be valued as cost of the project, equipment, the building, or vacant land.

Conditions:

• Applicant must have a land registered under his/her name
• Applicant must be a resident of the island where the registered land is located
• Applicant or family must be living in the island or minimum three years

According to the government, married couples and single parents will be prioritized in awarding loans under the scheme.

The loan scheme will be operated and managed by Housing Development Finance Corporation (HDFC). However, applications will be approved by a joint credit committee composed of representatives from HDFC and Housing Ministry.

Application deadline and other details will be announced by HDFC at a later date.