News Column

CRDB Bank Dishes Out 1.4 Billion - House Loans

May 13, 2014

Daily News Reporter

CRDB Bank has disbursed 31 mortgage loans worth 1.4bn/- since the introduction of the product about a year ago, which is a sign of the fast growing housing sector in the country.

Presenting the bank's financial statements to about 29,466 shareholders during the Annual General Meeting (AGM) held last Saturday in Arusha, CRDB's Managing Director Dr Charles Kimei said a total of 59 mortgages loan application were received in the year ended December 2013 with a total value of 7.8bn/-.

"This is a positive growth and the focus of the bank is to become the market leader in the mortgage loan-book value as well as number of customers," noted Dr Kimei, adding that, "It is an opportunity for Tanzanians, especially youths to own homes avoiding inconveniences caused by renting houses."

He said the bank introduced mortgage loan product branded as "Jijenge" last year offering loans for home acquisitions.

It has a long term loan facility of up to 20 years offered for acquisition of residential properties through home purchase, construction or refurbishment.

With Jijenge product, he said CRDB believes that problems of how to source long term finances for construction, purchasing and renovation of houses will soon become history.

It is estimated that at present individuals take up to 10 years to put up a simple family house due to regulations associated with what it takes to get a mortgage.

Jijenge product attracts an interest rate of 18 per cent plus as well as one per cent insurance cover for the loan.

Dr Kimei added that Jijenge is progressively bringing about peace of mind to would be builders when it comes to constructing and owning a home.

The package also caters for a loan to rehabilitate and renovate a house.

The eligibility for the mortgage loans is spread to workers, entrepreneurs, farmers and fishermen with the interest rate being easily recouped through the appreciation of the value for the house as time goes.

Statistics from the National Housing Corporation (NHC) shows that the current demand for homes in the country stands at three million units.

The demand is increasing at an average of 200,000 units a year but only 15,000 houses are constructed a year.

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Source: AllAfrica

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