The Bank of Maldives (BML) and the Ministry of Construction, Housing and Infrastructure have signed an agreement to provide loans under the Government’s Hiyaavahi financing scheme, aimed at supporting home construction and completion across the Maldives.

The agreement was signed on Tuesday at a ceremony attended by Minister Dr Abdulla Muththalib, who signed on behalf of the Ministry, and BML CEO and Managing Director Mohamed Shareef, who represented the bank.

The Hiyaavahi financing scheme, launched by the Government on November 8 last year, is divided into three segments. The Rahvehi Scheme offers loans of up to MVR 1 million with no equity requirement and is aimed at residents of smaller islands. The Saharu Scheme provides up to MVR 3 million for those living in urban centres. The Fahi Malé Scheme is tailored for the Greater Malé Region and offers financing of up to MVR 6 million.

The agreement sets the loan terms at a five per cent profit rate, significantly lower than prevailing market rates. Structured under Islamic finance principles, the loans will be repayable over a 25-year period.

BML CEO Shareef said the bank will begin evaluating applications as soon as they are received, and aims to complete assessments within two weeks, before submitting them to the Ministry for further processing.

The scheme provides financial assistance to individuals constructing new homes as well as those completing unfinished housing projects. In addition to BML and the Ministry, the programme will be implemented in collaboration with Maldives Islamic Bank (MIB) and the Housing Development Finance Corporation (HDFC).