Azania Bank, PSSSF ink deal to provide mortgage for low cost housing

22Jun 2021
The Guardian Reporter
Dar es Salaam
The Guardian
Azania Bank, PSSSF ink deal to provide mortgage for low cost housing

LOW and middle income families seeking to own houses through mortgage can do so with immediate effect thanks to a deal signed between Azania Bank Limited and PSSSF Fund.

Azania Bank Limited’s managing director, Charles Itembe (L) and PSSSF Fund director general, Hosea Kashimba displaying copies of their agreement signed in Dar es Salaam this week to enable members of the fund get low cost housing mortgage loans. Photo: Guardian Correspondent.

The low cost houses whose prices range between 36m/- and 61m/- without value added tax are however only available in some regions. Speaking after the agreement’s signing ceremony in Dar es Salaam this week, Azania Bank’s Managing Director, Charles Itembe said to begin with, buyers can get PSSSF’s houses constructed at Buyuni in Dar es Salaam.

Itembe said interested parties will have to deposit 10 percent of the value of the houses or surveyed plots whose prices range between 2.5m/- and 15m/-. “I would like to commend PSSSF which is also one of the majority shareholders of the bank for coming up with such an innovative and inclusive idea targeting the majority of Tanzanians,” he said adding that beneficiaries should also be PSSSF members.

Itembe revealed that Azania Bank which is a pioneer in mortgage financing is proud to be associated with the project which targets to provide decent houses to the majority low and middle income Tanzanians.

“We at Azania have a long history of mortgage financing hence we urge the public to come and get the loans which charge the lowest interest rate in the market at 10 percent with up to 15 years repayment period,” the Azania Bank chief executive stated.

He pointed out that as one of the market’s largest and profitable banks in the market, has a track record of doing well in mortgage financing hence the deal with PSSSF. “As a vibrant financial institution we have an obligation to support government efforts to rapidly develop the country and grow the economy,” he stated.

In remarks after the deal was sealed, PSSSF’s Director General, Hosea Kashimba said as a fund which is entrusted with public workers pension contributions, the PSSSF has a responsibility to support the state in building decent houses for low income families.

“We have a responsibility to implement the government’s Vision 2025 and ruling party manifesto which among other things names priority areas as provision of water supply, electricity and better housing,” Kashimba said.

He pointed out that the fund which is legally entitled to invest profitably has been constructing houses in several regions of the country targeting its members most of who cannot afford expensive commercial apartments being built by other developers.

“The main objective of our projects is to provide our members and Tanzanians in general with affordable but decent houses in line with the government’s development blue-print and the ruling party manifesto,” he added while commending Azania Bank for lowering interest rates to 10 percent, the first of its kind in the market.

Apart from Dar es Salaam, other low cost houses are surveyed plots are in Iringa, Kagera, Katavi, Lindi, Morogoro, Mtwara, Rukwa and Ruvuma regions.

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