Bank of Maldives Ltd, BML, has raised their minimum margin requirement to 30 percent on two equity loans.
BML raised the equity requirement for Home Construction Loan and Real Estate Loan, which previously had a minimum equity requirement of 20 percent and 25 percent respectively.
BML offers the lowest interest rates in the nation for construction with 10.5 percent interest rate for 50 percent equity, 11 percent interest rate for 40 percent equity and 11.25 percent interest rate for 30 percent equity.
With a 15 years repayment period and a 12 month grace period, Home Construction Loans can be used to purchase land and build a new house, for home renovation, and to refinance existing construction loans from other institutions.
Though these loans covered the whole project previously, the loans are now limited to a maximum of MVR 10 million. Minimum loan amount is MVR 50,000.
A 30 percent equity for Real Estate Loan guarantees an interest rate of 11.75 percent, while a 40 percent comes with an interest rate of 11.50 percent and 50 percent equity comes with an 11 percent interest rate.
Real Estate Loans are granted to build apartments and row houses, and for the construction of guest houses, hotels, condominiums, and offices. Real Estate Loans can be repaid in 20 years with a grace period of 12 months.
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