TANZANIA – NMB Bank, a commercial bank, has unveiled a new US$9.95 million (TSh23bn) mortgage scheme dubbed ‘NMB nyanyua mjengo’, to support the government quest to have all its citizens build and own decent houses, reports Daily News.
The housing loan scheme targets to reach over 200,000 people. The bank said customers may borrow between US$4,327 (TSh10m) to US$86,541 (TSh200m) 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 during the launch, the Lands, Housing and Human Settlements Development Minister, William Lukuvi said that the government has disbursed over US$51.92 million (TSh120bn) 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 the 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.”
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.
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 a 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.
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.
