Real Estate: Huge Sums Available For Contractors

 Most commercial banks are willing to dole out loans to trustworthy contractors in the real estate sector

With a rapidly increasing urb anisation rate of 3.5 per cent and an urban population rising by at least 5 per cent each year, the quest for parcels of land for construction as well as houses for rental and procurement is ever growing. In response to this challenge, the country’s growing banking sector, characterised by the presence of close to 15 national and international commercial banks, have been offering real estate packages.
According to the Chief Finance Officer of National Financial Credit Bank, Fonda Fred, many people have understood the important role the commercial bank sector plays and “are rushing for loans.” Fonda said their financial institution has real estate loan packages for customers and can finance contracts in the housing domain running into tens of billions of FCFA.
Across the board, we gathered that commercial banks operating in the country readily give out mortgage loans for the purchase of plots, construction and renovation of houses. Their products also extend to consumption loans which can assist borrowers to equip their houses. Interest rates range between 9 per cent and 12 per cent and can be repayable within 60 months in most banks.
We learned commercial banks are more comfortable giving out real estate loans to fixed salary earners. In su...