Bank of Maldives announces lower borrowing rates for real-estate related loans

Eligible customers can borrow as much as MVR300,000 (USD19,471) without additional security 

Water bungalows on Maldives island. ChatonChokpatara/Shutterstock

According to local news agency, the Bank of Maldives (BML) will be lowering the fees for housing, as well as personal loans to help its citizens and investors cope during the pandemic.

The interest rate for BML ’Lifestyle Loan’, for instance, has reduced to 12 percent, with borrowing amount of up to MVR300,000 (USD19,471) and no additional security. This type of loan is suited for property owners who regularly receive a rental income.

Meanwhile, the lowest interest rate in the country at 10 percent is the ‘Housing Loan’ portfolio, which is applicable for the ‘Home Purchase Loan’ and ‘Home Construction Loan’ with equity of 50 percent.

Commercial ‘Real Estate Loan’ have also reduced interest rates for as low as 10.5 percent.

For customers who are looking to borrow over MVR300,000 to MVR 1.5 million, interest rates are still at 12 percent with additional security.

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As for personal loans, the country’s national bank said that the interest rate for ‘Lui Express’ loan has dropped to 15 percent.

They also announced that qualified customers can loan as much as MVR300,000 without the need for additional security. Meanwhile, the ‘Lui Micro’ loan, which is for individuals who don’t receive a fixed regular salary, now has a reduced interest rate of 12 percent.

“With over 15% reduction in pricing, today’s announcement is a significant positive change in our portfolio,” said Moosa Nimal, the Director of Retail and SME Banking at Bank of Maldives.

“Many across the country continue to face uncertainties arising from the COVID-19 pandemic and the new lower financing rates will be a welcome change for our customers, helping to ease access to financing. We have also introduced similar reductions in our BML Islamic portfolio.”