More than one billion rufiyaa has now been handed out under the Hiyaavehi Finance Scheme, the government programme that offers low-rate loans for people building their own homes.
According to a social media update posted by the Housing Ministry last Thursday, 839 individuals have received financing worth a combined MVR 1,084,573,337.
Breakdown of Applications Across Categories
Demand for the loans has been strong. The ministry listed the following application figures:
- 341 applications under Fahimale for housing construction in the Male area
- 585 applications under Sahar for urban centres
- 1,329 applications under Ravvehi for all other islands
That adds up to more than 2,200 applications in total, though only 839 have so far been approved and funded. The gap between applications and actual disbursements is not unusual in schemes of this size, but it does leave many still waiting.
How the Loans Work
The financing follows an Islamic model with a five percent profit rate. Borrowers repay over 25 years. The scheme is open to people starting new homes as well as those whose construction projects stalled halfway through.
Completing unfinished houses was one of the presidential pledges tied to this programme. The loans are channelled through Bank of Maldives (BML), Housing Development Finance Corporation (HDFC) and Maldives Islamic Bank (MIB), working with the Housing Ministry.
Officials say the plan is to issue MVR 2 billion in loans each year. Half of that amount, MVR 1 billion, is meant to come from the state budget, with the rest supplied by the participating banks.
What Comes Next?
Whether the annual target of MVR 2 billion will be met, and how quickly the remaining applications move through the system, remains to be seen. For the 839 people who already have the funds, the next step is simply getting the concrete poured and the walls up.
