Interest rate for "Gedhoruveriya Loan" twice lower than other schemes: minister

The interest rate for the newly introduced “Gedhoruveriyaa Loan” scheme are twice lower in comparison to other loan schemes, says Minister of National Planning, Housing and Infrastructure Mohamed Aslam.

Speaking at the ceremony to launch the loan scheme, Minister Aslam highlighted that he believes interests for loans issued to construct and renovate homes must be reduced.

In his remarks during Monday night’s ceremony the minister noted that atoll residents are required to travel to capital Malé City for several different purposes, one of the biggest reasons being the lack of housing in their respective islands.  

The “Gedhoruveriyaa Loan” scheme was introduced with the sole purpose of resolving this issue, the minister said.

Aslam noted that there is a vast difference between developing housing units in the capital as well as outlying atolls and doing it under a loan scheme. As such, housing units built in residential islands of outlying atolls will have a lower commercial price than those in the capital region. With this being said, Aslam stressed on the importance of makings loans to develop and renovate homes in residential islands across outlying atolls easily accessible.

Further the minister stressed that loans being provided by local banks come with a high interest rate and that this will be challenging for atoll residents who wish to acquire loans to develop and construct homes across islands outside of the congested capital.

Minister Aslam went on to note that the fact that the newly launched loan scheme has an interest rate of six percent is what makes it so special. This the minister said is twice lower than the loans currently being issued.

The government has budgeted MVR 1.5 billion for the development of housing units across residential islands.

Aslam expressed hope that opportunities will be provided for younger people wishing to build homes, under the scheme.