NMB Bank targets to reach over 200,000 people through its new mortgage scheme unveiled in Dar es Salaam yesterday.
The housing loan scheme dubbed ‘NMB nyanyua mjengo’ for which the bank has set aside 23bn/-, is supporting the government quest to have all its citizens build and own decent houses.
The bank said customers may borrow between 10m/-to 200m/-loan for building a house from the foundation to the finishing and the loan is payable in 15 years period at 17 per cent interest.
According to the Bank of Tanzania (BoT) study the annual demand for houses is 200,000 units thus the new NMB housing product will help address the shortage of houses in the country.
Speaking at the launching event, the Lands, Housing and Human Settlements Development Minister, William Lukuvi said that the government has disbursed over 120bn/-to the Tanzania Mortgage Refinance Company Limited (TMRC) in the last five years to provide long term funding to banks for executing their mortgage financing schemes in the country.
“We have disbursed over 120bn/-to commercial lenders through the TMRC to make sure that more people get access to housing loans and manage to build decent houses,” he said noting that many people in the country own surveyed plots but lack source of finance to develop them.
He added, “I commend NMB Bank for introducing the new housing product to give more people opportunity to build and own decent houses. I encourage all citizens across the country capitalise on the new NMB mortgage product in order to build and own decent houses,” Mr Lukuvi said all that the government wants is for its people get access to various sources of finance and be able to develop and build decent houses at affordable costs.
The minister said the report from the banking sector shows that banks have so far disbursed over 400bn/-housing loans in the last five years but the government need to verify the beneficiaries of the loans.
There are currently over one million people already issued with title deeds for which the minister stressed that the bank may use as an opportunity to increase its customer base in its house scheme.
In another development, Mr Lukuvi directed the National Housing Corporation to collaborate with NMB to use the new house scheme provide and benefit the long list of people who qualify to have house loans.
The NMB’s acting Managing Director, Ruth Zaipuna said the new NMB house loan scheme will provide immense opportunity to all Tanzanians build and own decent houses.
“NMB is supporting government concerted efforts to help its people develop their plots and own decent houses at affordable costs,” she said noting that as many public servants have shifted to Dodoma, this is will be a unique opportunity for them to access affordable housing loans from NMB.
She said 23bn/- set aside for loan scheme may increase depending on the demand for houses in the country.
The NMB Chief of Retail Banking, Filbert Mponzi said for an individual to qualify for the house loan must have surveyed plot as well as reliable source of income for paying back the loan.
The new mortgage proportion offers more attractive terms to borrowers, including a 15 years repayment period and competitive interest of 17 per cent.
Building in the country belongs to individuals executing it through savings but have not been helpful in achieving something viable.
He said NMB has already several housing loan schemes including the purchase that applies to all customers who would like to buy houses or apartment and that the finance up to 90 per cent of the selling price.
The other product is the refinance or equity release to customer who owns a complete titled property and would like to get cash release from their property to invest in other legal activities.
The semi finish loan product that help people to finish up their houses, start financing from linter stage; the money will be disbursed in two stages that is roofing and finishing.
The World Bank estimates that the housing investment in Sub-Saharan Africa represent up to six percent of the GDP and one house built can create up to five new jobs.
