Housing
Improvement Loan (Urban)
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TYPE
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Housing Loan (Tameer)
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Currency
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USD /
AFA
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Minimum
Amount
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200
dollars / AFA 14,000
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Maximum
Amount first cycle
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10,000
dollars / AFA 700,000
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Admin
Fee
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1 %
of Disbursed Amount
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Maximum
increment for loan renewal
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Subsequent
loans, based on project requirement
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loan
depending on repayment capacity, cost of improvement and collateral.
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Possibility
to have two outstanding loans for a customer
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Yes,
but the sum of the two loan amounts should not exceed 10,000 USD/ AFA 700,000
The debt ratio and repayment capacity of combined debts should stay within
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FMFB
acceptable limits
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Maximum
loan size as a percentage of property value
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The
loan amount may not exceed forty (40) percent of the appraised value of the
home after project completion
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Maximum
loan size as a percentage of project cost
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The
loan amount may not exceed 70% of the estimated project cost borrowers
contribution may only be in the form of cash or kind (sweat equity)
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Minimum
duration
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6
months
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Maximum
duration
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36
months
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Installments
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Monthly
and Seasonal
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Max.
Grace Period per annum (months)
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Rural:Seasonal:1-6
Regular (Salaried): 1-3 Urban: 1-3 |
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Interest
Rate (Declining)
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25%
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Interest
Rate (Flat)
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14%
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Saving
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Voluntary
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Security
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Third
party guaranty
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Collateral
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For
Loans below USD 1000 only third party gurantees and above USD 1000 Title Deed
(House, Business, land, commercial building etc) + Third Party Guarantee
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Purpose
of Loan
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Incremental
and new house construction, rebuilding after disasters, renovations and/or
expansion of structures, and connection to domestic utilities like water and
electricity; septic tanks/wells; construction of boundary walls, windows,
kitchen, toilets, tubewell etc.
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Eligibility
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Valid
NID CardAge between 18-65 yearsPositive loan history with FMFB
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Comments