A total of 839 applicants have so far been approved for financing under the HiyaaVehi financing programme for building homes, the Ministry of Infrastructure, Housing and Urban Development has said.
Under the first phase of the Hiyaa Vehi scheme, 891 people have been approved to receive financial assistance through the programme.
The housing ministry said banks have so far approved financing for a total of 839 applicants under the HiyaaVehi financing scheme, amounting to USD 70.01 million.
The financing is provided under three categories: USD 389,000 to USD 649,000 per applicant under the Fahimale’ scheme, USD 395,000 under the 'Shaharu' scheme, and USD 64,900 under the 'Rahvehi' scheme.
The ministry said it has received 1,329 applications for the Rahvehi scheme, 586 applications for the Shaharu scheme and 341 applications for the Fahimale’ scheme.
The HiyaaVehi programme has an annual financing target of USD 129.8 million. Of this, USD 64.9 million will be provided by the government, while the remainder will be financed by banks.
The scheme provides financing at a 5 percent profit rate based on Islamic principles. Applicants will also have up to 25 years to repay the financing, according to the housing ministry.
President Dr Mohamed Muizzu has previously said the government is working to establish easier arrangements for people who lack the financial capacity to build homes to obtain bank loans for house construction.