The Government has launched the "Gedhoruveriya" loan scheme, as part of the administration's wider housing policy.
The government said that the newly unveiled loan scheme can be utilized for a new building, renovation, or completion of construction of an ongoing project.
Speaking at the launching event, President Ibrahim Mohamed Solih said that the loan scheme initiated today is intended primarily for residents living outside of the main cities to allow for easier access to housing finance.
Earlier this year, he revealed that MVR1.5 billion would be earmarked next year in the budget for regional housing development projects.
The government said that this is the first loan with the lowest interest of 6 percent ever introduced for residents outside the greater Male' region. The government said that each applicant can receive a maximum of MVR 700,000 as a loan under the scheme and that the applicant can register the land for the housing as collateral for the loan.
The government said that the loan scheme gives a grace period of 12-15 months for construction and that loan allows up to 20 years for repayment.
It noted that a minimum of two individuals are required per application and that loan covers 80 percent of the total cost of the project. The government also said that the remaining 20 percent put up by the project owner does not need to be saved in the bank.
It highlighted that the applicant can choose the repayment period for the loan and that the monthly payment would depend on this. The government added that no additional fees or deposits needed for the Gedhoruveriya loan scheme.
