Home Construction Financing

BML Islamic Home Construction financing facility provides a Shari’ah compliant alternative to build the home of your dreams. 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 property finance in line with your faith or simply want a more principled way of building your home, BML Islamic Home Construction Finance offers the answer. This facility can also be used to purchase land and build a new house, renovate, extend and refurbish your existing home, and can also be used to refinance existing construction loans/ finance facilities from BML or from another institution.


Key features

  • Based on the Shari’ah principle of Diminishing Musharakah financing
  • Financing period up to 20 years.
  • Financing up to 80% of project cost.
  • In addition to salary income, income from other sources and the forecast income from the project can be considered
  • Can be taken jointly with other individuals
  • Grace Period: Up to 12 months, depending on the size of the project


Lease Rates

Customer’s equity contribution Lease rates: per year
20% Base Rate + 1.50% = 10.50%
30% Base Rate + 1.25% = 10.25%
40% Base Rate + 1.00% = 10.00%
50% Base Rate + 0.50% = 9.50%


How is BML Islamic Home Construction Financing Shari’ah compliant?

BML Islamic Home construction 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

  • Maldivians aged 18 years and below 60 years at the time of submission of the application. (If repayment is to be made from project income, no maximum age requirement).
  • Client should be land owner, children or parents of land owner (at least one Client should have a legal connection)


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 Home Construction 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 Home Construction Finance does vary based on individual applications and we will keep you updated throughout the process.

Applicable Fees

Application Fee: MVR 1,000 for each application. This fee will not be refunded.

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