President Dr Mohamed Muizzu has said a new government scheme to help cover the equity contribution required for bank loans to build homes will ease the financial burden on people who have been unable to begin construction.
The President made the remarks during the 10th episode of his Rayyithunge Adu programme, which provides a platform for citizens to raise their concerns directly with him.
During the programme, a participant shared difficulties in obtaining a bank loan to build a house on a plot allocated in Hulhumalé Phase 2. The participant said construction had yet to begin because they had been unable to meet the conditions set by banks.
Addressing the concern, President Muizzu said the Government was working to make it easier for people who wish to build homes to access bank financing. He said a dedicated scheme was being developed to assist with the five per cent equity contribution required by banks.
The President said the funds needed for the scheme had already been set aside in a trust fund. He added that the assistance would be provided as a non-repayable financial grant, with approximately USD 12,945 planned for the scheme.
President Muizzu said people who had received land plots could pool their resources to make better use of the assistance. For instance, a group of five people could receive support totalling up to USD 64, 725 million while groups of three could also qualify for a substantial amount of assistance.
He said the arrangement would help beneficiaries cover a significant portion of the required five per cent equity contribution, enabling them to secure bank loans and proceed with construction without further delays.
“We are working to make the terms much easier so that this can be done. This is very important, but priority must be given to those who have not received a flat under the social housing programme — those who do not have any form of housing,” the President said.
The Government is working to finalise the scheme as soon as possible before opening it to the public. President Muizzu also said preparations were under way for the Government’s main housing scheme.
He expressed confidence that the introduction of these schemes would provide significant relief to many Maldivians seeking to build their own homes.