Bank of Maldives (BML) has on Tuesday introduced a new loan and financing product to offer easy access to finance for recipients of housing units under the ‘Hiyaa’ housing scheme.

Under the new ‘Home Improvement Loan’, the country’s national bank will provide financing to flat recipients for finishing and furnishing requirements for their units, starting from MVR 25,000 up to MVR 150,000.

These loans have a repayment period of five years and are accessible for an interest rate as low as 12 percent.

Those who seek loans amounting MVR 150,000 will be required to pay a monthly fee of MVR 3,337.

Following the launching of BML’s Home Improvement Loan, the national bank’s Managing Director and CEO Timothy Sawyer revealed that the announcement will be positive news for the Hiyaa flat recipients during this challenging period with uncertainties surfacing in the face of Covid-19.

Sawyer noted that those eligible for the loans may finance up to MVR 150,000, without the need for additional equity fees or security, to complete the work pending on their housing units.

He went on to announce that a similar Shariah compliant product is also available with for BML Islamic customers through BML Islamic.

BML went on to announce Home Improvement Loan Plus on Tuesday, through which customers will be financed to finish and furnish other flats and row houses purchased from private developers. Those eligible for the additional loan will be allowed to seek amounts between MVR 25,000 – 300,000 without added security for a period of five years.

The Home Improvement Loan Plus carries an interest rate of 12 percent as well and is lower than BML’s existing unsecured loan products.