Interest rates to be reduced for social housing project loans
This move could bring much-needed financial relief to hundreds of struggling homeowners who defaulted on payments due to harsh repayment terms.
Banners calling for rent reduction displayed outside Hiyaa flats (file photo)
Bank of Maldives (BML) has been urged by President Dr. Mohamed Muizzu to introduce relief measures for loans issued for social housing projects.
The request came in light of 535 loans provided by the country’s national bank for completing Hiyaa flats and 26 loans for purchasing Vinares flats, all part of social and affordable housing initiatives. Discussions with the bank have focused on easing the terms of these loans.
BML has indicated that it could reduce the profit (interest) rate for Hiyaa flats finishing loans from the current 12 percent to 10 percent. The bank has also proposed creating payment plans to regularize accounts for borrowers who have defaulted due to repayment difficulties. For loans issued for purchasing Vinares flats, the profit (interest) rate may be lowered from nine percent to eight percent.
The president has requested that the bank implement these changes through proper procedures.
