Maldives Pension Administraion (MPAO) and Commercial Bank of Maldives (CBM) have signed an agreement which will allow pension fund to be used for down payments on CBM’s home purchase loans.
The agreement was signed by CEO of MPAO, Mohamed Hussain Manik, and CEO and Managing Director of CBM, Dilan Rajapakse, at a ceremony held at Pension Office.
“We are proud to say that this agreement will make home purchase more convenient for a lot of people. We thank our partners who are collaborating with us to expand this service,” Manik stated.
He stated that the pension fund can be used for more services once the laws are revised. He added that MPAO is currently doing research on what changes can be brought to the law and the pension fund services.
Manik stated that MPAO is currently collaborating with the World Bank to do research on how to expand the pension fund services.
CEO of CBM, Rajapakse stated that they are hopeful that the new agreement will make more citizens eligible for home purchase loans, and that CBM aims to provide finance for home loans in the most convenient way for the customers.
“Our aim is to provide options to the customers that will make it more convenient for them, and to expand home purchase loan services. We provide home purchase loans, and home construction loans,” Rajapakse said.
CBM home purchase loan applicants can use up to 80 percent of their pension funds as down payment. The money used for down payment will be collateralized at MPAO for the duration of the loan.
MPAO has signed similar agreements with Islamic Bank, Bank of Maldives and HDFC in addition to CBM.
According to MPAO, 74 individuals have used their pension funds for home purchase so far.