Harambee Sacco has unveiled two loan products to enable its members who own property to access money through mortgage financing to develop it, and others to directly purchase ready.
In the two loan facilities; Home Loan and Jenga Loan, the Sacco offers members a repayment grace period of 25 years capped at Sh4 million each.
The Sacco, according to chairman, Macloud Malonza, intends to finance up to 600 units at an estimated cost of Sh2.4 billion in the period 2020-2025.
Our members have been securing loans, and only buy land which is usually left idle for many years.
Jenga Home Loan
However, now, as a Sacco ventures into Jenga Home Loan, this will enable help its members to add value to their pieces of land already acquired.
Through this mortgage financing programme, we are giving the members an opportunity to add value.
This also targets the members would be seeking to purchase ready homes at affordable mortgage rates.
Nairobi Metropolitan Services (NMS), director general, Mohamed Badi officiated the launch, and observed that the entry of Harambee Sacco and other expected Sacco societies into the mortgage arena, is set to change the dynamics that have for years driven mortgage industry in Kenya.
The direct involvement of the Saccos in this sector is definitely set to tilt the scales of mortgage uptake in the country,” he noted, saying that NMS is also expected to benefit from these programmes in its ongoing upgrading of old residential estates in Nairobi.
Purchase of land
Industry statistics show that about 36 percent of all loans granted by Saccos in the country to members valued at Sh119 billion between 2012 and 2016, went directly towards purchase of land and houses.
It is against this backdrop, that Harambee Sacco wants to up the game in ensuring that they put the land in units use and keen to give their members an opportunity to access long term loans at friendly rates.
Through its credit facility, the Sacco is giving members in the Jenga Home Loan an interest rate of up to 0.75 per cent, and repayments at no extra cost. It is the same for home buyers in the Home Loan plan.
Launch of the two facilities follows last year’s application by Harambee Sacco to join Kenya Mortgage Re-Financing Company in order to start financing mortgage loan products.