Gov’t Reveals Details of Two Housing Loan Facilities Under Hiyaavehi Programme
Drone view of Hiyaa Flats | Photo: MV+
The government has announced further details of two financing facilities under the Hiyaavehi Financing Programme, a nationwide initiative aimed at expanding access to affordable home construction loans in accordance with Islamic Shariah principles.
The Hiyaavehi Financing Programme consists of three targeted schemes to address varying housing needs across the country. On Saturday, the government outlined the features of the Hiyaavehi Fahimalé and Hiyaavehi Saharu products under this initiative.
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Under the Hiyaavehi Fahimalé scheme, applicants in Malé will have access to financing of up to USD 3.89 million, while joint applicants within Malé may qualify for amounts between USD 3.89 million and USD 6.48 million, supporting shared ownership models. The maximum repayment period will be 25 years, determined by the issuing bank based on the applicant’s age. A maximum grace period of 18 months is allowed, with repayments calculated following this period.
Applicants will need to contribute between five and ten per cent as equity. The relevant land registry must be mortgaged with the bank, and an advance payment of up to 15 per cent of the total project cost is required. Remaining funds will be disbursed progressively as construction progresses.
For urban residents, the Hiyaavehi Saharu product provides access to loans of up to USD 1.95 million. This facility mirrors the repayment terms of the Fahimalé scheme, with a 25-year maximum term, up to 18 months grace period, and similar equity contribution and mortgage requirements. Funds will likewise be released in line with project milestones.
At a signing ceremony with the Bank of Maldives (BML) on 24 June to advance the Hiyaavehi Financing Programme, Minister of Construction, Housing and Infrastructure Abdulla Muththalib reported strong public interest in the initiative. He noted that the Hiyaavehi Rahvehi scheme had received 1,329 applications, while 586 applications had been submitted for Hiyaavehi Saharu, and 341 for Hiyaavehi Fahimalé, before the deadline closed on 31 May.
Launched on 8 November 2024, the Hiyaavehi Programme offers Shariah-compliant financing at a competitive profit rate of five per cent.
The government has allocated USD 64.9 million in the current year’s budget to support financial assistance through this scheme. In addition, participating banks will match this funding to bring the total available financing to USD 129.7 million, according to President Dr Mohamed Muizzu.
