Co-op Bank, KMRC launch affordable housing loans
Co-operative Bank of Kenya in collaboration with Kenya Mortgage Refinance Company (KMRC) has launched an affordable mortgage product that offers up to 15 years’ repayment period.
During a stakeholder’s workshop at the Fairmont Norfolk Hotel on Thursday, Co-op Bank revealed that the product was crafted after many months of negotiations and consultations with key housing stakeholders including proper developers and micro-credit agencies.
Customers who have banked with Co-op Bank for six years and have a maximum household gross income of Sh150,000 qualify for the loans.
Eligible products include purchase of a ready-to use residential house, purchase of a plot buy and build arrangement.
The loans are offered at an interest rate of 9.9 percent p.a.
The balance facility fee can however be reduced to 2 per cent of the loan amount in a one-off after the loan is taken.
Terms of the loan include security – property under purchase only.
Employed applicants can take loans of up to 15 years, and up to 10 years for self-employed applicants.
The minimum loan amount offered is Sh500,0000 and a maximum of Sh6million for properties in the Nairobi Metropolitan and Sh5 million for properties outside the Nairobi Metropolitan.
Customers can top up their loans under the Commercial Rate upon repaying the loan for at least 12 months.
