The product facilitates the purchase of single user residential plots secured by a lien over the plot being purchased, the product also considers on exception – the financing of plots for multi-dwelling residential use and investment commercial use.
FEATURES AND FUNCTIONALITY
• The product caters to financing loans in the major urban developed towns in South Sudan subject to credit appraisal, property registration and formal registration of charges.
- Financing will only be done if a plot is within municipality, city or county council of the town
- Plots in environs of urban towns and County Headquarters above will not be financed
- Land must have title deed
- No agriculture land or plot will be accepted as security
• Debt to income Ratio – income being considered as a source of repayment
• Security/Collateral – the land/plot being purchased
• Source of income – Salary income or other steady incomes sources e.g., rental income.
• Loan currency;
- South Sudanese Pound (SSP)
- US dollar (if borrowers’ income is in that FCY currency and subject to Advances to deposit ratio)
• Interest rate
- LCY Loans – The Bank Base Rate as advised from time to time plus a margin of up to 10% depending on credit appraisal.
- FCY Loans – For foreign currency credit facilities, the applicable interest rates will be determined using the Bank Base rate and subject to necessary approvals.
• Facility Fees;
- 1% of the loan amount
- 2% of the loan amount for Diaspora clients
• Interest calculation – based on reducing balance basis
• Maximum Loan amount is dependent on a customer’s repayment ability
• Minimum loan amount – SSP 500,000
• Professionals used – Lawyers and Valuers listed in the banks panel
- Ability to finance vacant residential land