Known as “Wezesha”, beneficiaries will get loans that range between Sh40 million to Sh500 million and the amount will have to repaid in a maximum period of 25 years.
Speaking in the city yesterday, the BoA deputy managing director, Mr Wasia Mushi said an 18 per cent interest will be charged on the loans.
“Our interest rate of 18 per cent is for 25 years. The loan portfolio stands at Sh10 billion and could be increased depending on demand,” he said.
Mr Mushi said the product is open to all public and private employees so long as they meet the requirement whereby the bank will finance up to 100 per cent of all the construction requirements and extend the payment tenure up to 25 years.
According to available data, the country faces a shortage of 3 million houses with the demand growing at an annual rate of 1 per cent annually.
He noted that the conditions for the loan require that the customer choose a contractor to build the house among preferred contractors who are selected by the bank. The loan will disbursed in phases such as foundation, lintel, roofing and finishing in a period of one year.
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