Friday
22nd Nov 2024
Dhivehi Edition
Ministry of Housing, Land and Urban Development
MoU Signed for Offer of Housing Construction Loans with No Higher Than 5 Percent Interest Rates
The signing ceremony of the MOU on the introduction of the Housing Finance Scheme. | Photo: TMJ
The Housing Development Finance Corporation (HDFC) and the Ministry of Housing, Land and Urban Development have signed a Memorandum of Understanding (MoU) to provide loans at an interest rate of not more than five per cent.
HDFC Managing Director Ahmed Zeenad signed the MoU on behalf of the company at the Senaco Hall of the Voice of Maldivs tonight. Minister Dr. Ali Haidar signed the agreement on behalf of the Housing Ministry.
The administrative fee for loans issued in accordance with Islamic standards is 5 percent. The maximum amount allocated under the scheme is up to 1 million MVR.
The scheme will be introduced in the Greater Male Area, along with areas designated as urban centers by the government. The scheme will be implemented on the basis of Islamic finance and conventional banking if required.
Soft loans at an interest rate of not more than 5 percent for housing construction was a presidential promise of President Dr. Mohamed Muizzu.
President Dr. Muizzu said that although soft loans will be introduced for the construction of houses initially, loans will also be introduced for renovation and completion of houses before the end of this year, also at an interest rate not exceeding 5 percent.