Construction Ministry, BML Formalise Accord to Advance Shariah-Based Hiyaavehi Financing Programme

The Ministry of Construction, Housing and Infrastructure has formalised an agreement with the Bank of Maldives (BML) to advance the 'Hiyaavehi Financing Programme', a nationwide initiative designed to expand access to affordable home construction loans in line with Islamic Shariah principles.

Signed by the construction ministry and BML, the agreement aims to reinforce support for individuals and families constructing homes on allocated land, particularly within the Malé region. The programme, which launched on 8 November 2024, offers Shariah-compliant financing at a competitive profit rate of 5 percent.

The signing ceremony was held earlier today at Dharubaaruge on Tuesday. Representing the ministry was Dr Abdulla Muththalib, Minister of Construction, Housing and Infrastructure. BML was represented by Chief Executive Officer Mohamed Shareef.

Shareef noted the bank's intent to enhance procedural efficiency in the disbursement of loans. "BML intends to finalise the evaluation process within two weeks of receiving applications, after which the documents will be forwarded to the Ministry for further action," he said.

The Hiyaavehi Financing Programme comprises three tailored schemes designed to address diverse regional housing requirements. The 'Hiyaavehi Rahvehi' scheme, intended for residents of the outer islands, provides financing of up to USD 0.65 million. The 'Hiyaavehi Saharu' scheme grants urban residents access to loans of up to USD 1.95 million. In Malé, the 'Hiyaavehi Fahimalé' scheme extends financing up to USD 3.89 million. Joint applications submitted within Malé may secure between USD 3.89 million and USD 6.48 million, accommodating shared ownership arrangements.