Maldives Pension Office (MPO) has signed an agreement with Mauritius Commercial Bank of Maldives to provide home financing loans for members of Maldives Pension Retirement Scheme. The agreement was signed by CEO of MPO Mohamed Hussain Manik and Managing Director of Mauritius Commercial Bank of Maldives Desire LEO.
The agreement will allow Mauritius Commercial Bank to accept retirement savings as an equity for home loans, paving way to make home finances more accessible and affordable. MPO has previously signed similar agreements with Bank of Maldives, Maldives Islamic Bank and Housing Development Finance Corporation (HDFC) to provide affordable housing finances for Maldivians.
Under the agreement, Maldives Retirement Pension Scheme members applying for housing loans can collateralise the balance of retirement savings accounts as an equity for the loan. In the circumstance when the balance in a member's retirement savings account deems insufficient for the total equity, the applicant may also combine the amount from retirement savings accounts of other family members as equity for the loan.
With the commencement of housing loan schemes, 183 members has so far applied for collateralisation with 124 loans already approved, according to MPO.