CRDB Bank has disbursed 31 mortgage loans worth TZS 1.4 billion 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 mortgage loan application were received in the year ended 31st December 2013 with a total value of TZS 7.8 billion.
“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 the youth to own homes and avoid the inconveniences caused by renting houses.”
He said the bank introduced the mortgage loan product branded as “Jijenge” in 2013 offering loans for home acquisitions.
It has a long term loan repayment period of up to 20 years offered for the acquisition of residential properties through home purchase, construction or refurbishment.
With the 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% as well as 1% insurance cover for the mortgage 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) show that the current demand for homes in the country stands at 3 million units.
The demand is increasing at an average of 200,000 units a year but only 15,000 houses are constructed annually.
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