NMB issues 1bn/- loans as mortgage finance grows in Lake Zone regions

PIUS RUGONZIBWA in Mwanza

NMB Bank has dished out over 1bn/- to the Lake Zone based customers as loans for the newly introduced mortgage finance scheme now gaining more pace.

The Bank’s Manager for Mortgage, Ms Miranda Rutege told the ‘Daily News’ over the weekend here that the scheme which was introduced in June last year targeting to woo ambitious Tanzanians to build modern houses in a bid to reduce current housing shortage seriously facing the country.

According to Ms Rutege, the bank will be able to provide loans to the tune of 90 per cent of the total value of the proposed housing project while the loan seeker will have to foot the remaining 10 per cent.

“The bank introduced this scheme after realising the growing needs in the housing sector facing the country and so far over 1bn/- has been dished out for the Lake Zone customers, and our survey has revealed the portfolio is sharply growing,” she said.

She said NMB Mortgage Finance aims to ease the current housing demand of the housing units particularly in the urban settings as the urbanisation grows steadily.

Commenting on the development, the Nyamagana District Commissioner (DC) Dr Philis Nyimbi challenged NMB to introduce friendly schemes in a bid to encourage more people to take loans for housing investment and quality settlements.

She said time has come where people should cultivate a new culture towards investing in the housing sector but that will never be achieved if banks will not review their conditions governing credits facilities.

“I would like to take this opportunity to mobilise the Nyamagana residents and the rest in Mwanza Region in particular to take the loans for the construction of modern houses.

However, I call for the banks like NMB to introduce friendly conditions that will encourage more customers to go for the mortgage schemes,” she said.

Dr Nyimbi cited demand of submission of collaterals as one of the bottlenecks facing many loan seekers calling for the bank to revisit the matter.

The DC was of the view that the issue of collateral could be made simple by involving the local government leaders who might help in identifying the loans seekers and put up strategies of tracing them once they take the loans.

The official introduction of the Mortgage Finance scheme for the Lake Zone was accompanied by the exhibition where various dealers of building materials in Mwanza Region showcased their products mainly used in the real estate industry.