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BML Islamic Guest House Finance

Our BML Islamic Guest House financing provides you a Shari’ah compliant alternative to invest or expand your Guest House businesses across Maldives. This facility can be availed to finance construction of guest houses / hotels or to renovate, extend and refurbish your existing guest house/hotel.

Guest House Finance can be utilized for

  • Construction of new Guest houses/Hotels
  • Expansion of Guest houses/Hotels
  • Furnishing of Guest houses/Hotels
  • Refinance current facilities availed for the above mentioned purposes

Key features

  • Based on the Shari’ah principle of Diminishing Musharaka financing
  • Financing up to MVR 30,000,000
  • Equity: 30%
  • Lease Rate: 13% per annum
  • No deposit required
  • Financing period up to 15 years
  • Longer/flexible grace period up to 18 months

Eligibility

  • Individual Maldivians or businesses, companies and other institutions registered in Maldives
  • Maldivians aged 18 years and below 60 years
  • Customer must have a consent agreement with the land owner where land is owned by a third party.
  • Customer should be a BML Customer with at least 12 months account operation

How to apply

Submit completed Guest House 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 Guest House 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

How is BML Islamic Guest House Financing Shari’ah compliant?

BML Islamic Guest House 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.

Takaful (Islamic Insurance) Requirement

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.