President Ibrahim Mohamed Solih on Wednesday announced that Bank of Maldives (BML) has begun issuing loans to finish the pending works of the Hiyaa Housing project.
The president made this statement while answering a question by a reporter at Wednesday’s press conference held at the President’s office. The president noted that a lot of people are facing financial issues regarding the finishing works of the Hiyaa flats. In order to settle the matter, the president informed that a home improvement loan will be issued and that citizens can now apply to it. He assured that this money will be received to those who apply the loan, through BML.
The President also noted that he had heard complaints about three months not being enough to complete the finishing works of the flats. He then affirmed that the matter was discussed with Housing Development Corporation (HDC) who have decided to extend the date to pay rent until December.
He further stated that the state has to spend more than MVR 500 million from its budget even when the period to pay rent is extended and noted that he previously stated that more than MVR three billion is to be spent at the rate the flats are currently being issued.
The finishing touches of the flat are now to be completed and it is to be noted that no rent will be taken during this period.
BML in early July announced 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.
The Home Improvement Loan Plus carries an interest rate of 12 percent as well and is lower than BML’s existing unsecured loan products.
