NMB has set aside 23bn/- for the mortgage-housing product but the amount is subject to increase depending on market demand.
Speaking in Dar es Salaam during the launch this week, NMB's acting Managing Director, Ruth Zaipuna said the new housing loan scheme will provide immense opportunity to all Tanzanians to build and own decent houses.
“NMB is supporting government concerted efforts to help its people develop their plots and own decent houses at affordable costs,” Zaipuna said noting that as many public servants have shifted to Dodoma, this is will be a unique opportunity for them to access affordable housing loans from the bank.
The NMB Chief of Retail Banking, Filbert Mponzi said for an individual to qualify for the house loan, they must have surveyed plots as well as reliable source of income to pay back the loan.
The new mortgage proportion offers more attractive terms to borrowers, including a 15 years repayment period and competitive interest of 17 per cent. Building in the country belongs to individuals executing it through savings but have not been helpful in achieving something viable.
He said NMB has several housing loan schemes in the market namely purchasing that applies to all customers who would like to buy houses/apartments, where by the bank will finance up to 90 percent of the selling price.
The refinance or equity release to customer who owns a complete titled property and would like to get cash release from their property to invest in other legal activities.
The semi finish loan product that help people to finish up their houses, start financing from linter stage; the money will be disbursed in two stages that is roofing and finishing.
Borrowers can get between 10m/- to 200m/- loan as per their needs and ability to repay and that the loan is payable in 15 years period at 17 percent interest.
Speaking at the launch, Lands, Housing and Human Settlements Development Minister, William Lukuvi said the government has disbursed over 120bn/- to the Tanzania Mortgage Refinance Company Limited (TMRC) in the last five years to provide long term funding to banks for lending to the people.
“We have disbursed over 120bn/- to banks through the TMRC to make sure that more people have access to housing loans and manage building decent houses,” he said noting that many people in the country own surveyed plots but lack source of finance to develop them.