Following the recent successful launch of their Vehicle and Asset finance product in Zambia, First National Bank Zambia (FNB) yesterday officially launched their home loans product to the Zambian market at Lusaka’s Inter Continental Hotel.
The main features of the FNB home loans product are flexible pricing, terms and accessibility appropriately suited to the local market. The launch is most timely, taking into consideration the increasing consumer demand for houses, the few options available for affordable housing finance, the recent decrease in the base lending rates and Government’s priority to increase the number of low to medium cost housing units in the country. FNB Zambia becomes the fifth retail financial institution to provide property finance in the country. The Honourable Minister of Local Government, Housing, Early Education and Environmental Protection, Professor Nkandu Luo was in attendance as Guest of Honour.
Speaking at the launch, FNB Zambia Chief Executive Officer Sarel van Zyl said: “The home loans product will give our customers access to housing finance for the purpose of buying, renovating, building and releasing equity out of their asset at a competitive and flexible pricing structure.” He further added: “the launch of the home loans product is just one example of our commitment to innovation across our entire range of retail banking products to be introduced in Zambia”.
FNB offers a comprehensive range of retail lending products including mortgage loans, vehicle and asset finance, personal and business loans to Zambian nationals and residents.
During the past decade, significant investments in key sectors and the overall infrastructure of Zambia has led to solid economic growth and a budding property market. Unfortunately, the shortage of housing units has remained large due to the low effective demand brought about by affordability factors such as low formal employment levels, low income and the high cost of borrowing.
Housing finance is said to be starved of credit options and many consumers yearn for innovative options to finance the purchase of a home. Research in the local market further indicates that short term loans and high interest rates significantly increase repayments, thereby making the dreams of many Zambians to own their own house impossible. In line with FNB Zambia’s vision to “Create a Better World” and with the above mentioned in mind, FNB developed their home loans product for its Zambian clientele.
FNB is proud to be the first bank in Zambia to introduce a product that will allow home buyers to get an upfront bond. An upfront bond is a pre-approved certificate that displays the amount of finance that has been approved in principal by the bank for which the customer qualifies, before they start looking for a house.
Honourable Nkandu Luo commented: “Residential finance has remained expensive and unaffordable for the majority of Zambians with the largest growth in the housing sector being self-build projects as individuals purchase land around the major cities and build their own houses over a period of 3 – 7 years. It is timely that FNB Zambia has entered the local property finance market, offering an alternative option on flexible as well as innovative pricing and terms.”
Regular income earners, who are either FNB or non-FNB clients, will be eligible to access FNB’s innovative range of home loans finance facilities, which includes a home owner’s and credit life insurance policy that provides cover against death, permanent disability and critical illness, a quick response time and a maximum repayment period of 20 years at affordable interest rates.
“FNB hopes this venture will give a great boost to the housing sector, empower Zambians and contribute immensely to the economic growth of the country. These are all part of FNB Zambia’s continued strategy to contribute towards local development and growth”, concluded van Zyl.
This indeed is a welcome move, Congrats FNB Zambia. I only hope Zambian salaries will be equal to the task?
Boi wanya, iyo nshinyele…okay, isula akaputi tukununshe…iyo ninya
Good move. However, please, may the banks reflect the reduction in tax by 5% in the current lending rates. The weakness with Zambians is that we are ready to protest against government but we are not ready to protest against capitalists that are applying usury principles!
I agree with Luciferous. Iwe chi The joker you shud grow up. Comment/debate on the issue at hand. Ngati ulibe zokamba shut up!
at what rate are u lending out to ordinary Zambian..thats when we could commend you..?when do you start and how long does it take to pay back..?
IF THERE IS MORE MONEY IN THE POCKETS, THERE IS NO NEED – YOU BUILD YOUR OWN HOUSE SLOWLY NAYO AMA LOAN YOU BECOME A SLAVE AMA DEDUCTIONS EVERY MONTH YAA, YOU CANNOT EVEN SLEEP – ANYWAY ITS GOOD
@5 pulamasaka the period has been mentioned that up to 20 years tamwachipwisha ukubekenga bwana mwabutukila uku komenta. This is a good move and very interesting. Ni more money in our pockets.
This is very good. Our Zambian credit finance industry is growing and really becoming of international standards. Thsi si how people own houses in developed countries, through mortgages.
Typical
mortgage repayment periods are: RSA 20 yrs, UK 25 yrs, USA 30 yrs. Affordability is key, that means people’s income will need to be growing.
We hear people in Zambia have to have cash to buy a house or car. It doesnt have to be that way.
#2 Joker, ok now tell us your contribution to this subject. I am sure that’s not all you can think. Good man. Or woman.
:) elyashi lyawamapofye epobucelele. It sounds good. Nangu ulenwa amenshi kuchiku elyo baleputula loan naufimona ati ni ng’anda not wapoka loan ya motoka
This is a good move, majority of Zambians will be able to own houses…
Only 11 comments. Topic beyond cadres?
I HOPE YOU ALSO CONSIDER FARM EQUIPMENT SUCH AS TRACTORS AND PLOUGHS THAN JUST MOTOR VEHICLES,THIS SHALL HELP SMALL SCALE FARMERS AND ADD VALUE TO AGRICULTURE AS ONE OF OUR MAIN INDUSTRIES TO ENABLE US GROW FOOD PLUS OTHER CASH CROPS???????????????
We yearn to get the loan for the betterment of our children and the future. it is the best idea but you will have to lure a lot of customers. in fact its an excellent idea.
Well said no 13.
Nice move
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its a good move, whats the leading rate and does it includes properties on a farm lands
:x
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Great move FNB,Zambians please let’s take this opotunity and use it to the maximum…..
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Who are entitled? does it mean even without an account at FNByou can still apply? I have an account but been active for 7 months only, am I eligible
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good news is to hier about loans am intrested i need a loans i’ve got a car (spasio corora)enregisted i will finish with paper work this week reply