Minister of National Planning, Housing and Infrastructure Mohamed Aslam has said that more than USD11 million has been disbursed so far under the Gedhoruveriya loan scheme.
Responding to a question at the Parliament of the Maldives, Minister Aslam said the Gedhoruveriya loan scheme is a very successful initiative of the government. He said the main objective of the loan is to complete unfinished houses in the atolls and to provide finance for the reconstruction of houses.
Additionally, Minister Aslam said the loan scheme is the most important initiative for the residents living in the atolls. As such, he said the loan was given to those who have land owners who are having difficulty in building houses due to their financial situation. He said more than 500 individuals have applied for loans under the scheme. He also said that many of the applications have been accepted and the funds are now being disbursed.
The loan scheme was introduced in June 2021 and started being disbursed. The scheme is being implemented under the Housing Development Finance Corporation (HDFC). The loan has a repayment period of 15-20 years. Only the building site can be taken as collateral for the loan. The grace period for construction is 12 months and 15 months. The loan scheme is available at 6% interest rates.