Government Approves $70 Million in Housing Loans for 839 Maldivian Applicants

The Ministry of Infrastructure, Housing and Urban Development has approved financing for 839 applicants under the HiyaaVehi housing programme, totaling USD 70.01 million in financial assistance. The initiative aims to alleviate the housing crisis by providing accessible loans for citizens to construct their own homes. The financing is distributed across three distinct categories tailored to different needs. The 'Fahimale’' scheme provides the highest support, ranging from USD 389,000 to USD 649,000 per applicant. The 'Shaharu' scheme offers USD 395,000, while the 'Rahvehi' scheme provides smaller grants of USD 64,900. Demand for the programme remains high, with the Ministry recording 1,329 applications for the Rahvehi scheme, 586 for Shaharu, and 341 for Fahimale’. These figures underscore the significant need for affordable construction financing across the archipelago. The HiyaaVehi programme operates with an ambitious annual financing target of USD 129.8 million. To ensure sustainability, the government provides USD 64.9 million of this total, with the remaining balance sourced through partner banks. To make the loans accessible, the financing is provided at a 5 percent profit rate based on Islamic principles, with a generous repayment period of up to 25 years. This initiative aligns with the broader vision of President Dr. Mohamed Muizzu, who has emphasized the government's commitment to establishing easier financial arrangements. The President has previously stated that priority must be given to citizens who lack the immediate financial capacity to build homes but have the potential to secure bank loans through government-backed schemes.