Government Reveals Details of Two Housing Finance Schemes

The government has disclosed details of two schemes under its housing finance program aimed at addressing housing challenges.

The program introduces two schemes: “Fahimalé Scheme” and “Sahar Scheme.”

Under the Fahimalé Scheme, loans up to MVR 6 million will be provided. However, priority will be given to those combining smaller land plots (less than 600 square feet) for development, with loans up to MVR 10 million available for such projects.

The maximum repayment period is 25 years, determined by participating banks based on the applicant’s age. A grace period of up to 18 months is offered, which is not included in the repayment period. Applicants must contribute 5-10% equity, and land registry must be mortgaged with the bank. Remaining funds will be disbursed progressively based on construction progress.

The Sahar Scheme, specifically designed for residents outside Male’, offers loans up to MVR 3 million. It maintains similar terms including the 25-year maximum repayment period, 18-month grace period, and 5-10% equity contribution requirement. The scheme provides up to 15% as advance payment, with remaining funds released progressively based on construction progress. Land registry mortgage is also required under this scheme.

Both schemes are part of the government’s initiative to provide housing solutions across the Maldives, with the Sahar Scheme specifically targeting areas outside the capital city.