MVR 989 Million in Loans Approved Under Hiyaavehi Scheme, Minister Reveals

The government has approved MVR 989 million in loans under the subsidised Hiyaavehi finance scheme, the lowest-interest home construction loan programme in the Maldives, according to Housing Minister Dr Abdulla Muththalib.

The scheme offers loans at a five percent interest rate, providing significant support for citizens seeking to build their own homes.

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The approved loans are awaiting disbursement and will be processed by the Bank of Maldives (BML) once the necessary paperwork is completed. The government has stated that it does not directly intervene in loan allocation, which is carried out by the bank in line with its regulations. Adjustments to equity and property rates will be made to facilitate the process.

The Hiyaavehi scheme provides an extended repayment period of 25 years, with an 18-month grace period, and requires 20 percent equity, which can be contributed by either the applicant or the government. The property under construction serves as the sole collateral for the loan.

President Dr. Mohamed Muizzu has previously indicated plans to allocate approximately MVR 1 billion from the state budget annually to support the scheme. He has pledged to ensure housing for all Maldivian citizens over the age of 18 by the end of his term.