Housing Ministry to Disburse Hiyaavehi Construction Loans to 891 Applicants by Year-End

The Ministry of Infrastructure, Housing and Urban Development has released financing to 244 applicants under the Hiyaavehi house construction programme, with plans to reach all eligible recipients by the end of the year. State Minister Ahmed Nazim Mohamed revealed during PSM’s 'Raajje Miadhu' programme that 891 individuals were selected during the first phase of the scheme. While 244 have already received their funds, the ministry is finalizing the process for the remaining 629 eligible applicants, aiming to complete all disbursements within the coming month. The State Minister attributed the delays to complex administrative procedures and regulatory hurdles. Under current guidelines, only 20 percent of construction costs may be allocated to commercial works. The ministry encountered several cases where applicants requested funds exceeding this limit or where the Bill of Quantities (BOQ) surpassed the approved loan amount, necessitating extensive coordination between the ministry, banks, and applicants to resolve the discrepancies. Hiyaavehi offers financing across three distinct categories to meet varying needs: the Fahi Male’ scheme provides between USD 389,104 and USD 648,508; the Saharu scheme offers USD 194,553; and the Rahvehi scheme provides USD 64,851. To support the initiative, the government has allocated an annual budget of USD 129.70 million. This funding is split equally, with USD 64.85 million provided directly by the government and the remainder sourced through banking partners. The programme is structured as a Sharia-compliant financing scheme featuring a 5 percent profit rate. To ensure long-term affordability for Maldivian homeowners, the ministry has set a repayment period of up to 25 years.