NBC BANK LAUNCHES HOME LOAN CAMPAIGN

NBC Bank's Director of Retail Banking, Elibariki Masuke (fourth left), and Tanzania Mortgage Refinance Company Limited (TMRC) Chief Finance Officer, Oswald Urassa (fifth right), hold up a special logo featuring a house, symbolizing the launch of the NBC Housing Loan campaign launched on Wednesday in Dar es Salaam. Other stakeholders in attendance were CPS CEO, Sebastian Dietzold (third from right), Nabaki Africa CEO, Russell Stuart and some NBC Bank employees.

Dar es Salaam, September 28, 2023: NBC Bank has launched a home loan campaign dubbed ‘Mkopo wa Nyumba wa NBC’ in order to improve access to better housing in Tanzania. The campaign offers Tanzanians the opportunity to access loans ranging from TZS 20 million to TZS 1 billion, with the flexibility to repay the loan gradually over a period of up to 25 years. The primary goal of the lender’s initiative is to accelerate the availability of improved housing options throughout the country.

The campaign launch event, took place in Dar es Salaam on Wednesday and was attended by various stakeholders such as the Tanzania Mortgage Refinance Company Limited (TMRC), CPS, a real estate developer in Tanzania, Nabaki Afrika Limited, retailers and wholesalers of building products and construction materials, government officials, customers, and employees of the bank. Elibariki Masuke, NBC’s Director of Retail represented the bank’s MD, Theobald Sabi.

During the event, Mr. Masuke highlighted that the campaign aims to do more than just offer Tanzanians the chance to become homeowners. It also seeks to stimulate economic growth and development within society by providing secure housing options. Furthermore, the initiative aims to bolster the commercial real estate sector within the country.

"Building homes creates employment opportunities for a wide range of individuals, from construction workers to building materials vendors. This, in turn, stimulates economic circulation through the purchase of materials and generates revenue for the government through taxes on water and electricity usage within these homes. As a result, this campaign presents vast economic opportunities across the entire construction industry value chain," he explained.

Mr. Masuke outlined the loan options associated with the plan, which include the purchase loan, the renovation or completion loan, and the home guarantee loan.

"Through our home purchase loan, we have collaborated with various companies, including CPS, a real estate developer in Tanzania to provide customers with the opportunity to buy homes at a reduced interest rate. The loan range varies from TZS 20 million to TZS 1 billion, with repayment lasting up to 25 years, allowing the bank to offer up to 85% of the home's value."

"With regards to the renovation or completion loan, NBC gives customers the chance to complete the construction of homes that they had started but were unable to finish due to various reasons. In this category, we have established partnerships with stakeholders, including dealers of construction materials like Nabaki Africa, where NBC customers will receive discounts on purchases made through them," he added.

Mr. Masuke further elaborated on the home guarantee loan, which enables customers to use their property as collateral when obtaining a loan. The funds can be utilized for various development projects, such as investing in businesses or government bonds. Additionally, the loans include property and life insurances to ensure the safety and security of the loan recipient and their families at all times.

Speaking at the event, TMRC Chief Finance Officer, Oswald Urassa, noted that the current rate of affordable housing loans in the country is still below 1%, compared to neighboring countries like Kenya with 1.8% and Rwanda with 4%. He commended NBC Bank for introducing a service that will boost the availability of decent housing in Tanzania.

"TMRC is well-prepared to work closely with NBC to achieve this important plan, which is in line with the government's goal of improving housing for its citizens. This loan can attract more people, especially considering the 25-year repayment period, during which borrowers can repay the loan amount equal to or less than the amount they pay for their house rents. I urge Tanzanians to seize this opportunity," Urassa said.

CPS, Chief Executive Officer, Sebastian Dietzold, cited economic challenges among Tanzanians as one of the major obstacles to achieving adequate housing. He identified the NBC Housing Loan as a crucial solution to this problem.

Meanwhile, CEO of Nabaki Africa, Russel Stuart, revealed that through the NBC Housing Loan program, the company plans to offer discounts ranging from 5% to 15% on certain building materials for customers who benefit from the loan.

The NBC Housing Loan campaign comes at a time when statistics show a demand for 200,000 new homes each year in the country, while there is a current shortfall of three million housing units.