Hiyaavehi Housing Finance Disbursed to 244 of 891 Selected Applicants

Housing finance under the government’s Hiyaavehi scheme has so far been disbursed to 244 applicants, while funds for the remaining selected beneficiaries are expected to be released in the coming months, the Ministry of INfrastructure, Housing and Urban Development has said.

Speaking on state media’s Raajje Miadhu program, state Minister for Housing Ahmed Nazim Mohamed said the government had approved financial assistance for 891 applicants in the first round of the scheme. He said loans have been arranged and issued to 244 applicants, while administrative and procedural work is ongoing for the remaining beneficiaries.

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Nazim said the ministry aims to complete the disbursement of funds to all 891 selected applicants before the end of the year, with payouts for the remaining 629 expected to begin within the coming month.

He attributed the delays to the time required to finalise disbursement procedures and resolve issues identified in some applications. These included home designs allocating more than the permitted 20 per cent of the property for commercial use and bills of quantities exceeding the approved loan amount.

The Hiyaawehi scheme provides financing under three categories. The Fahi Malé category offers between MVR 6 million and MVR 10 million, while Saharu provides up to MVR 3 million and Rahvehi up to MVR 1 million per applicant.

The government has allocated MVR 2 billion annually for the scheme, with MVR 1 billion provided directly by the government and the remainder financed through participating banks.

The scheme follows Islamic financing principles and offers a 5 per cent profit rate, with repayment periods of up to 25 years.