Business

Pension made usable for down payment on CBM’s home loan

Commercial Bank of Maldives (CBM) and Maldives Pension Administration (MPA) has signed an agreement, making money saved in the Pension Fund usable for down payments on CBM’s home purchase loan.

The agreement was signed this Monday by CEO and Managing Director of CBM, Dilan Rajapakse and CEO of MPA, Mohamed Hussain Manik.

Under the agreement, down payment for CBM’s home loan can be paid using the money saved in the Retirement Savings Account. The money will be collateralized at MPA during the duration of the loan.

CEO and MD of CBM, Dilan Rajapakse noted the increase in demand for housing schemes, which he credited to economic development and completion of multiple housing projects in the country. He said the agreement with MPA will be a huge convenience to prospective homeowners.

CEO and Managing Director of CBM, Dilan Rajapakse speaks at the signing of the agreement between Commercial Bank of Maldives and Maldives Pension Administration Office, facilitating the use of pension money for CBM’s home loan on April 16, 2018. (Sun Photo/Mohamed Afrah)

Rajapakse said the bank was working on making housing schemes as convenient as possible to prospective homeowners.

He said Maldivian citizens will be able to use money in the Retirement Saving Account for home purchase starting from this Monday.

Monday’s agreement marks the fourth time for MPA to make an agreement to allow money in Retirement Savings Account to be used for housing, having already made similar agreements with Bank of Maldives, Maldives Islamic Bank, and Housing Development Finance Corporation (HDFC).

74 individuals have used money in the Retirement Savings Account for housing scheme so far, reports MPA.

Full details are available at the link below:

Source URL: Sun.mv

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