The Maldives has officially launched the "Hiyaavehi Finance Scheme," a new initiative aimed at providing affordable housing through soft loans, fulfilling a commitment made by President Dr Mohamed Muizzu.

The scheme was inaugurated during a ceremony at the Islamic Centre, underscoring the Government's dedication to addressing the housing crisis affecting many citizens.

During the launch, President Dr Muizzu emphasised that housing is a top priority for his Administration, alongside policies related to national independence. He revealed that the forthcoming fiscal budget has been tailored to meet the urgent need for housing, allocating MVR 1 billion for the Hiyaavehi Finance Scheme and an additional MVR 1.5 billion for social housing projects.

The Hiyaavehi Finance Scheme will feature tiered loan caps based on geographic location: up to MVR 1 million for individual islands in the atolls, MVR 3 million for urban centers, and MVR 6 million for residents of the capital, Malé. The President noted that while the Government will inject MVR 1 billion into the scheme, local banks are anticipated to offer loans totalling up to MVR 2 billion, thereby broadening access to affordable housing solutions.

This initiative is designed to assist individuals without land in building new homes, completing unfinished constructions, and making necessary repairs. Loans will be available to eligible borrowers starting this week, with disbursements set to begin in the new year. The Government plans to establish this scheme as a permanent feature of the annual budget moving forward.

Housing Minister Ali Haider Ahmed stated that the Hiyaavehi Finance Scheme will provide significant relief to families facing financial hardship due to housing shortages. Loans will be available at a 5% service charge, with a nominal contribution required to comply with Shariah norms. Importantly, borrowers will not need to provide any equity, making housing finance more accessible.

In a collaborative effort, loans ranging from MVR 6 million to MVR 10 million can be applied for in conjunction with the homes' caretakers, with repayment terms extending over 25 years at the same 5% interest rate. President Dr Muizzu reaffirmed his Government’s commitment to tackling pressing issues, emphasising that housing initiatives have been a key focus since he took office.

The launch of the Hiyaavehi Finance Scheme marks a significant step forward in the Maldivian Government's efforts to provide affordable housing and alleviate the financial burdens faced by families across the nation.