New Fund Established to Boost Access to Housing Finance

The Maldives Monetary Authority (MMA) has established a new fund to provide affordable housing loans through the nation’s commercial banking system. 

The initiative has been formalised under the gazetted Inclusive National Affordable Housing Scheme Regulations and is designed to ensure accessible housing finance across the archipelago, in line with Islamic financing principles.

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The regulations set out the framework for the Inclusive National Affordable Housing Scheme, detailing its operational guidelines and fund management. The scheme is primarily aimed at offering affordable financing solutions for the purchase of residences in the capital, Male’. It is scheduled to run for an initial period of five years, providing long-term support for aspiring homeowners.

The fund and the scheme will be administered by a financial institution specifically designated by the MMA. Commercial banks are required to contribute between 10 and 15 percent of their total loan and debt portfolios, unless otherwise directed by the MMA, to ensure a strong capital base for the fund.

Financial assistance under the scheme will be available through two types of facilities, Type A and Type B, with the MMA determining the allocation of funds for each. The financing facilities are designed to offer long-term affordability, typically with repayment terms of at least 25 years, though shorter periods may be granted if requested by the borrower.