The Banque commerciale du Rwanda (BCR) June 3, launched a new product to its clients. The product is a mortgage loan for people with middle to low incomes.
The mortgage product will be possible for borrowers who have the affordability to repay the loan but don’t have the deposit required (20%)through a partnership between BCR and SORAS.
When one goes to BCR and asks for a mortgage loan, the bank will first seek for insurance from SORAS, it is after getting it that the key to the house is given to the client.
The new product was announced during a meeting today at BCR head office involving the South African society (HFGA) led by the M.D of BCR Sir Sanjeev Anand, the Chief Executive Officer of SORAS Sir Benjamin MBUNDI, the Head of Retail Banking Sir Benjamin MUTIMURA and the Chief executive officer of HFGA (Home Finance Guarantors Africa Reinsurance) Dr. Charlene Lea.
The meeting highlighted a new mortgage loan product, the Collateral Replacement Indemnity (CRI) for people earning middle to low gross income of 2 million and below per month taking a mortgage loan of a property below Rwf 55 million where the borrower will be paying 50% of his net income.
Unlike other mortgage loans this one favors borrowers in middle to lower income helping them acquire their own homes.
The individual in search of a loan will then deposit 1% and BCR will purchase the insurance premium cover of 4% to SORAS to cover up to 19% of the required deposit that actually enables BCR customers to borrow up to 99% of the property price where interest ranges from 14.5 to 15.7%.
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