BML Raises Loan Repayment Age Limit to 75

Bank of Maldives has increased the maximum age limit for loan and financing from 60 to 75 years, a move expected to significantly expand access to long-term financing for middle-aged and older borrowers.

The decision was approved at the bank’s board meeting held yesterday, according to CEO Mohamed Shareef, who said the policy change is aimed at improving financial accessibility and flexibility for customers.

Under the previous policy, all loans were required to be fully repaid by the time a borrower reached 60 years of age. This effectively limited loan tenures for older applicants. For example, a 55-year-old borrower would only qualify for a maximum repayment period of five years.

With the revised framework, borrowers can now extend repayment periods up to the age of 75, allowing significantly longer tenures depending on their age at the time of application. According to Shareef, this change enables repayment periods of up to 20 to 25 years, particularly benefiting individuals seeking housing finance.

The adjustment is expected to ease constraints faced by middle-aged applicants who previously had limited access to long-term loans due to age restrictions. By extending repayment timelines, the bank is effectively broadening eligibility and affordability for larger financing needs.

The bank has also lowered the required equity contribution for such customers to 5 percent, further reducing the upfront financial burden and improving accessibility to financing.

Shareef noted that the revised terms will also extend to Maldivians working abroad, particularly those earning substantial income in foreign currency, who will now be eligible to apply for housing loans under the updated policy framework.

The bank has also expanded its credit card eligibility criteria, announcing that individuals over the age of 75 may now be issued credit cards, provided they can demonstrate a stable source of income.

These combined measures indicate a broader shift in BML’s retail banking approach, with a focus on inclusivity and adapting financial products to changing demographic and income patterns.

The policy changes are likely to have implications for housing finance and consumer lending, particularly as demand for long-term financing continues to grow. By extending loan tenures and introducing targeted incentives, the bank is positioning itself to support a wider segment of the population while aligning its offerings with evolving customer needs.