HOUSING MICROFINANCE LOAN

Housing microfinance is used in developing countries to allow poor and low-income families to improve their housing. ‘DCB Housing Microfinance Loan’ is a special product, tailored for the Government Employees and self employed individuals. It consists mainly with loans to low income people for renovation or expansion of existing homes or land acquisition.

FEATURES

- Maximum loan amount:

• Salaried employees up to 18 months salary
• SMEs/Individual Micro TZS 1 MiIlion - TZS 30 Millions

- Repayment period: up to 5 Years

- Guarantees:

• Fiduciary, Mortgage, Mixed and Employers Guarantees

- Equity Contribution for SMEs/Individual Micro is:-

• 10% of Loan Amount

- Insurance Cover is 1.5%

- Interest 17% to 23% (reducing) per annum

- Repayment on monthly basis

- Commitment Fee is 3%

- Loan turn-around time 7 working days (formalitie including search and site visits)

- DCB will not provide technical assistance on the construction of houses

- Credit officers shall visit the client regularly to ensure propoer use of funds

REQUIREMENTS

General Terms and Conditions

Eligibility

• Age: 18 - 65 years - For SMEs and Individual Micro
  

• Age 18  - (subject to Retirement period) - For Salaried Clients
  

  
  

For salaried clients:-

• Must be an employee of the main government or local government, parastatals, international organization or strong and reputable private company with a good financial track record.

• Must have worked for more than 3 years

• Collective guarantee agreement between the employer and the bank must be in place as part of the security.

• The current salary slip will be submitted to the bank.

• The introduction letter from employer plus valid employment

• ID shall be submitted to the bank.

• Application forms shall be signed by borrower and employer before submitting to the bank.

 For Individual micro/micro-entrepreneurs:-

• One year minimum experience in the current business and three months minimum duration for operation of a bank account with DCB.

• Proof of ownership of the business.

• Proof of stability in the current business.

• Personal documentation for both owner and spouse.

• Reference from credit bureaus

• Proof for ownership of land

• Applicant submits a construction project description and the budget.

• Recent passport photographs of the applicant must be submitted to the bank

 For solidarity group clients:-

• Proof of ownership of the business.

• Proof of stability in the current business.

• Personal documentation for both owner and spouse.

• Clients must have graduated in solidarity groups at least two years with a good loan track record.

• Reference from credit bureaus

 Securities for Salaried Clients:-

• A collective guarantee agreement between the bank and the employer will act as a security for the loan. All employers shall submit the specimen signature cards of their officers who will be approving the loans on behalf of the employer.

Securities for Business Clients:-

• Land title certificate-for land located within Dar es Salaam region.

• Sale agreement for untitled piece of land-for land located within Dar es Salaam region.

• Fixed deposit receipt

• Resident Permits for land located within Dar es Salaam region

 LOAN BENEFITS