Business / Companies
Mortgage loans back on market
18 Jan 2011 at 15:30hrs | Views
Zimbabwean Building Societies or savings and loan institutions have resumed making mortgage loans for the purchase of houses and building plots years after such loans were discontinued due to accelerating inflation.
Banking sources said the FBC and CBZ building societies, are now making loans from US$5 000 to US$100 000 to customers, on condition they earn at least US$1 000 a month.
However, this rules out many would-be borrowers, given that most Zimbabweans are making no more than US$200 a month.
An economist, Mr John Robertson, said that such loans are also too expensive for many Zimbabweans because of the steep 14% interest rate demanded by lenders.
He said beneficiaries tend to be Zimbabweans who are fairly well-off.
Banking sources said the FBC and CBZ building societies, are now making loans from US$5 000 to US$100 000 to customers, on condition they earn at least US$1 000 a month.
However, this rules out many would-be borrowers, given that most Zimbabweans are making no more than US$200 a month.
An economist, Mr John Robertson, said that such loans are also too expensive for many Zimbabweans because of the steep 14% interest rate demanded by lenders.
He said beneficiaries tend to be Zimbabweans who are fairly well-off.
Source - Byo24News
