President Dr. Mohamed Muizzu has launched the "Hiyaavehi Financing Program," a housing loan initiative providing financing at a 5% interest rate for residential construction.

This program fulfills one of President Dr. Muizzu’s key campaign promises and is being rolled out in partnership with three banks: the Housing Development Finance Corporation (HDFC), Bank of Maldives (BML), and Maldives Islamic Bank (MIB).

The program offers three tailored loan categories:

1. Hiyaavehi Rahvehi: Through HDFC, loans of up to MVR 1 million are available for housing construction on islands. No equity is required, but there is a fee for land ownership set by the Ministry. 

Loans under this category carry a 5% interest rate and are repayable over 25 years.

2. Hiyaavehi Saharu: Loans of up to MVR 3 million can be obtained through BML and MIB for housing projects in large urban centers. 

Similar to the Rahvehi loan, it has a 5% interest rate with a 25-year repayment term.

3. Hiyaavehi Furamale: This category, offered through BML and MIB, provides loans of up to MVR 6 million for housing in the Greater Malé area.

A 10% equity is required, with a 5% interest rate and a 25-year repayment term.

The program also supports construction projects that combine small plots under 600 square feet, with loans up to MVR 6 million plus an additional MVR 1 million per combined plot, capped at MVR 10 million.

According to the government, the Hiyaavehi Financing Program is designed to support Maldivians facing financial obstacles to starting or continuing their housing projects.

The program will also assist in the construction of houses by combining small plots of land in congested areas of Male’ city.

Loan applications can be submitted through the Hiyaavehi Portal, starting tomorrow.