Commercial banks have approved over MVR 1 billion in concessionary home loans for 839 applicants under the government’s flagship "Hiyaa Vehi Financing Scheme," the Ministry of Housing, Land and Urban Development announced. According to the ministry’s latest performance update, the total financing approved through partner financial institutions has reached MVR 1,084,537,557.48.
The nationwide initiative, introduced in November last year, aims to alleviate persistent financial bottlenecks faced by families attempting to construct or complete residential properties across both the capital and the atolls. Public uptake has remained robust across all three designated streams, with the highest demand concentrated in the atolls. A total of 1,329 applications have been submitted under the "Rahvehi Hiyaavehi" category for island communities, followed by 586 applications for "Saharu Hiyaavehi" in regional urban centres, and 341 applications under "Fahi Malé Hiyaavehi" for the Greater Malé area.
Unlike direct state lending, the program operates through three participating local banks using Islamic financing principles. Qualified borrowers benefit from a subsidised profit rate capped at 5 percent, paired with an extended repayment tenure of up to 25 years to keep monthly debt-servicing obligations manageable for middle- and lower-income households.
Financing thresholds and eligibility requirements vary by geographic category to reflect divergent construction and real estate costs. Under the Rahvehi Hiyaavehi tier, island residents can access up to MVR 1 million without being required to put down any upfront equity. Meanwhile, the Saharu Hiyaavehi and Fahi Malé Hiyaavehi schemes offer financing limits of up to MVR 3 million and MVR 6 million respectively, with borrower equity contributions set between 5 and 10 percent.
Representing the most expansive and affordable housing credit facility deployed to date, the scheme serves as a central pillar of the administration's broader shelter strategy. By unlocking commercial liquidity on concessionary terms, the government seeks to clear long-standing stalled residential projects and expand permanent homeownership across the country.