CRDB Bank has launched a new house loan scheme offering more attractive terms to borrowers including a longer repayment period.The new product, titled `Jijenge House Loan Scheme’ is billed to offer solutions to challenges facing Tanzanians in building their residential houses.
The Jijenge, a mortgage solution, expects to solve the house construction, purchasing or renovation in an environment under which it usually takes up to 10 years to put up a simple family house.
Unlike previous house loan scheme the bank had, which payback was not exceeding 5 years, the Jijenge loan repayment period is up to 20 years and attract interest rate of 18 per cent plus 1.0per cent insurance that cover for the loan.
Unlike previous house loan scheme the bank had, which payback was not exceeding 5 years, the Jijenge loan repayment period is up to 20 years and attract interest rate of 18 per cent plus 1.0per cent insurance that cover for the loan.
The package also caters for a loan to rehabilitate and renovate a house,” the Bank Managing Director Dr Charles Kimei (pictured) said during the launching of the scheme.
“Jijenge is designed specific to give a would-be-builder a peace of mind when it comes to construct and own a house.
Dr Kimei said that borrowers, ranging from workers, entrepreneurs, farmers and fishermen, should not worry about the interest rates charged despite being very competitive as the house value appreciation overtime knock off the interest rate and the principle.
“Don’t worry about the existing loan. We know how to take care of that before issuing a new one,” Dr Kimei said adding “after all it’s easier as most of the existing loans are in short term nature.”
Dr Kimei said that borrowers, ranging from workers, entrepreneurs, farmers and fishermen, should not worry about the interest rates charged despite being very competitive as the house value appreciation overtime knock off the interest rate and the principle.
“Don’t worry about the existing loan. We know how to take care of that before issuing a new one,” Dr Kimei said adding “after all it’s easier as most of the existing loans are in short term nature.”
“Everyone would like to be called a landlord and time has come to be called so, through ‘Jijenge’ initiative,” he said.
According to Dr Kimei, studies shows that the country demand for homes currently stands at three million houses while the demand is increasing at an average of 200,000 units a year.
According to Dr Kimei, studies shows that the country demand for homes currently stands at three million houses while the demand is increasing at an average of 200,000 units a year.
Data shows that only 15,000 houses are constructed per year. “This means that if we do not take effective action today the situation continues to worsen,” Dr Kimei said.
National Housing Corporation Director of Regional Operations and Administration Mr Raymond Mndolwa, said the period of 20 years to payback the loan is flexible thus attracting loaners to take the loan.
“If a main market player throws its full weight on real mortgage business, we are sure to see others follow suit. Remember NHC cannot build new homes unless there is supply of money,” Mr Mndolwa said.
CRDB’s Mortgage Business Manager Silas Katemi said mortgage business for home loans in Dar es Salaam alone currently is estimated to be over 500bn/- at the moment and increasing at a fast-pace.
National Housing Corporation Director of Regional Operations and Administration Mr Raymond Mndolwa, said the period of 20 years to payback the loan is flexible thus attracting loaners to take the loan.
“If a main market player throws its full weight on real mortgage business, we are sure to see others follow suit. Remember NHC cannot build new homes unless there is supply of money,” Mr Mndolwa said.
CRDB’s Mortgage Business Manager Silas Katemi said mortgage business for home loans in Dar es Salaam alone currently is estimated to be over 500bn/- at the moment and increasing at a fast-pace.
“It is estimated that ordinary Tanzanians spend ten years (10) and more to complete the construction of his house using his personal savings,” Mr Katemi said but said under Jijenge, things are expected to change drastically.
The regulation of getting a loan under Jijenge House Loan Scheme for workers includes a basic salary of not less than 200,000/- a month and 80 per cent of total house value to be built.
The regulation of getting a loan under Jijenge House Loan Scheme for workers includes a basic salary of not less than 200,000/- a month and 80 per cent of total house value to be built.
Repayments are based on salary deduction or a balloon repayment after the banks clarify the source of the fund or rental charges of the same house. The amount does not exceed 500m/-.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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