The Maldives Pension Administration Office signs an agreement with Commercial Bank of Maldives (CMB) to provide home financing loans to the members of Maldives Pension Retirement Scheme(MPRS).
The agreement was signed by CEO of Pension Office (MPAO) Mohamed Hussain Manik and MD/CEO of Commercial Bank of Maldives Dilan Rajapakse in a special ceremony held at the Pension office today.
In a statement given to the press, Manik declared that since the commencement of the housing loan scheme, 74 applications to purchase real-estate properties had already been recieved.
He also expressed MPAO’s wishes to open doors for other similar opportunities, highlighting that changes are needed to be made with respect to the existing pension policies before these further schemes can be implemented. He added that research work is currently underway to ensure such possibities.
Mr.Rajepakse said their hope is that many pensioners will qualify and thus be able to purchase land under this scheme and that it is CMB’s goal to be able to provide financial assistance to interested parties.
Under this agreement, MRPS members applying for housing loans can collateralize the balance in their Retirement Savings Accounts (RSA) as equity for the loan. Pensioners will be able to use up to 80 percent of their savings as down payment for real estate purchase.
Should the balance in a member’s RSA be insufficient for the total equity, applicants may also opt to combine money from retirement savings accounts of other family members as equity for the loan.