MVR 170 million allocated for Gedhoruveriya Housing Loan Scheme

Island home in Maldives | Photo: My feet will lead me

Malé, Maldives – National Planning, Housing & Infrastructure Mohamed Aslam says that MVR 170 million has been allocated for the Gedhoruveriya Housing Loan Scheme, to encourage people to build their houses in the atolls of Maldives.

This will cater to 242 people if the maximum loan amount of MVR 700,000 is taken by everyone. The available loan amounts range between MVR 500,000 to MVR 700,000.

Speaking to local news Mihaaru, Housing Minister Aslam said that depending on the demand by the people for the loan scheme, the fund can be increased. Minister Aslam said that the intention is to maintain the scheme as a sustainable growing fund.

This is a growing fund. The fund will increase as loans are taken.

Housing Minister Aslam

The Housing Minister elaborated that with MVR 700,000, a two or three bedroom house can be built. He added that this can be achieved by hiring local island contractors, as bringing contractors from Malé will add to the costs.

The amount of interest, at 6 percent is considerably high when compared to other local banks. MVR 5,015 must be paid as interest for a MVR 700,000 loan for 20 years. This adds up to a total of MVR 1.2 million.

The Gedhoruveriya Housing Loan Scheme is met with mixed reviews, while some appreciate the comparatively low interest rates in the local market, others criticize that the housing loan interests are considerably high in the Maldives when compared to other countries, limiting the ability for locals to build homes.