President Dr Mohamed Muizzu has announced a major expansion of the Bank of Maldives’ no-collateral housing loan scheme, raising the maximum available amount to USD 194,552. The move is part of a broader effort to address the country’s deepening housing crisis.
The announcement was made during a ceremony in Guraidhoo, Thaa Atoll, where the president met with residents and reiterated his administration’s commitment to resolving what he described as the Maldives’ most pressing domestic challenge.
“This process has now been further facilitated,” he said. “The bank has now decided to issue loans of up to MVR 3 million [USD 194,552] for housing construction on all islands of the Maldives without requiring any additional collateral. The bank’s board finalised this decision approximately two days ago, and applications for these loans will be opened very soon.”
The revised ceiling marks the third increase since the scheme’s inception. Initially capped at USD 64,851, the loan limit was raised to USD 129,702 in February. The latest revision nearly triples the original amount, reflecting a strategic intensification of the government’s housing agenda.
President Muizzu noted that, alongside the rollout of housing projects across the islands, new financial instruments are being introduced to empower citizens and expand access to home ownership.
He also drew attention to a separate initiative launched earlier this year: a loan scheme with a 5 percent interest rate. “This will be an ongoing project, continuing each year. It is a loan scheme for which any citizen, from any island, may apply and be given the opportunity to be considered for a loan.”
The president expressed confidence that these measures would ease the path toward securing adequate housing, describing the financial mechanisms as essential to achieving a “desirable and effective solution” to the challenges faced by Maldivian families.