The Government’s Hiyaavahi financing scheme received overwhelming support, with more than 2,200 applications submitted before the deadline closed.

As part of the Government’s initiative to provide financial assistance for building, renovating, or completing homes, applications for the Hiyaavahi scheme were accepted until May 31.

The Ministry of Construction, Housing and Infrastructure, received a total of 2,256 applications for the Hiyaavahifinancing scheme. 

The Hiyaavahi financing scheme is categorised into three segments: the Rahvehi scheme tailored for small islands, which provides loans of up to MVR 1 million with no equity requirement, the Saharu scheme for urban centres offering loans up to MVR 3 million, and the Fahi Malé scheme targeting the Greater Malé Region offering loans up to MVR 6 million.

The Ministry reported that the Rahvehi scheme received the highest number of applications, with 1,329 submissions, followed by 586 applications for the Saharu scheme and 341 for the Fahi Malé scheme.

The Hiyaavahi financing scheme provides housing loans at a 5 per cent interest rate, with a repayment period of up to 25 years. Disbursed through the Housing Development Finance Corporation (HDFC), the scheme does not require any equity contribution from applicants.

The Government plans to disburse loans under the scheme within three months of the application deadline. 

President Dr Muizzu has previously stated that the Government will allocate MVR 1 billion in the annual budget to support the scheme and its implementation. Although the Government has allocated MVR 1 billion for the scheme, the President stated that banks will provide up to MVR 2 billion in total financing.