Bml Islamic

Real Estate Finance

BML Islamic Real Estate financing facility provides a Shari’ah compliant alternative to invest in real estate business to develop property anywhere in the Maldives. The facility is offered under the concept of Diminishing Musharaka and conforms to Shari’ah laws specifically related to financing, ownership and trade. So, whether you are seeking funds for investments in line with your faith or simply want a more principled way of investing, BML Islamic Real Estate Finance offers the answer.

This facility can be used to build, renovate, extend and refurbish property for commercial use or for leasing, and can also be used to refinance existing Real Estate loans/ finance facilities taken from BML or from other institutions for the same purpose.

Real Estate Financing can be utilized for the construction of:

  • Residential housing for leasing
  • Flats/Apartments/Row Houses
  • Condominiums
  • Office Premises

Purchase a land and build a house

Key features

  • Based on the Shari’ah principle of Diminishing Musharakah financing
  • Invest and construct residential/commercial buildings in any location in the Maldives
  • Equity: 30%
  • No deposit required
  • Financing from MVR 50,000 to MVR 150,000,000.
  • Longer/flexible grace period up to 18 months, depending on the size of the project
  • Lease Rate: 13% per year
  • Financing period up to 15 years.

How is BML Islamic Real Estate Financing Shari’ah compliant?

BML Islamic Real Estate Financing works through the Diminishing Musharaka and conforms to Shari’ah laws specifically related to financing, ownership and trade. The nature of the contract is co-ownership and the transaction is not based on lending and borrowing of money. Bank invests in the construction creating joint ownership and then gradually transfers ownership to the customer.

Eligibility

  • Individuals, businesses, companies and other institutions
  • Maldivians aged above 18 years, and below 60 years at maturity (If repayment is to be made from project income, no maximum age requirement).
  • Client must have a consent agreement with the land owner where land is owned by a third party.
  • Client should be a BML Customer with at least 12 months account operation

Takaful Requirement (Islamic Insurance)

A comprehensive takaful policy including loss of rental/income is mandatory during the tenure of the facility. The client is provided with the following options for the takaful policy;

  • Client to pay for the takaful policy for the whole tenure of the facility to the takaful operator,
  • Client to pay for the takaful policy for one year to the takaful operator and pays for the remaining years on a monthly basis to the bank and bank will renew the policy on behalf of the client at the end of the year,
  • Include the cost of takaful in the facility amount and bank pays for the takaful policy for the whole tenure of the facility to the takaful operator
  • Client to include the takaful cost for one year in the facility amount and the client pays for the subsequent years for the policy to the bank on a monthly basis and bank will renew the policy on behalf of the client at the end of the year.

How to apply

Submit completed Real Estate Financing Application form and all supporting documents to BML Islamic Male’ Branch or any other branch outside Male’.

We will then assess your application, and will be in contact with you for the next steps. Processing time for Real Estate Finance does vary based on individual applications and we will keep you updated throughout the process.

Applicable Fees

Application Fee: MVR 1,500 for each application. This fee will not be refunded.

Other fees and charges will be levied as per BML Islamic Schedule of Charges