Bank of Maldives (BML) has announced "positive changes" to its Home Improvement Loan, introduced to offer financing for recipients of housing units under the government's ‘Hiyaa’ housing scheme.

Under the new financing scheme, the country’s national bank is providing loans starting from MVR 25,000 up to MVR 150,000, to flat recipients for finishing and furnishing requirements for their units.

BML said with the changes introduced from Sunday, a joint loan facility will be provided for immediate family members with a verifiable income source to the bank, if the property owner is ineligible.

BML noted that income from all sources such as salary, business income, rent income will be considered, and that the joint applicant must be immediate family of the primary applicant.

The Home Improvement Loan is applicable for Maldivians between 18 to 60 years of age who owns a flat, apartment, or raw house through a social housing project. While an income earned must be routed via any bank account for past 12 months, a minimum of one month-salary must deposited to the applicant's BML account.

The national bank announced the financing scheme back in July, with a repayment period of five years and an interest rate as low as 12 percent.

As well as recipients of Hiyaa flats, the new regulations also apply to the Home Improvement loans for furnishing and finishing of other flats and row houses purchased from private developers. Eligible applicants can borrow MVR 25,000, up to MVR 300,000 with the same interest rate.

The announced changes will extend to BML Islamic Home Improvement Financing and Home Improvement Financing Plus facility.

Hiyaa flat recipients have been given a three-month rent-free period to complete the finishing work of the flats including tiling, painting, installation of lights, fans, doors, and kitchen cabinets.