Real estate industry booms

THE booming real estate industry has seen an increase in the demand for personal loans with National Savings and Credit Bank (Natsave) providing K100 million to the public this year.
Natsave managing director Cephas Chabu said many people have continued to access personal loans to undertake various projects with borrowing to finance real estate projects.
Mr Chabu said in an interview on Tuesday that the levels of borrowing to finance real estate projects accounted for over 90 percent of the total disbursement to the public.
He said financing to real estate projects have been on the increase because personal loans have more flexible requirements than mortgages.
“Mortgages come with a lot of requirements such as title deeds for land which may not be ready when they are applying for the loans and this tends to inhibit people from borrowing. So a lot of people apply for personal loans to build or finish building houses and keep refinancing the loans until their houses are complete,” Mr Chabu said.
Zambia’s current deficit is about two million.
He said the boom in the country’s construction industry will continue to increase demand for consumer loans.
Mr Chabu says the bank plans to increase the allocation in view of the increased demand. He could not disclose how much the bank will set aside for consumer loans in 2015.
He was happy that the public is borrowing to finance for long-term projects.


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