Getbucks' mortgage program gets positive uptake

Getbucks' mortgage program gets positive uptake
Published: 20 October 2017
Zimbabwe Stock Exchange-listed Getbucks Microfinance Bank says it is has extended mortgage loans to the tune of around $600 000 as at mid-year.

The deposit-taking microfinance institution started offering mortgage at the end of last year, entering a highly competitive sector with a number of banks offering mortgages including Stanbic, National Building Society, CBZ, FBC, CABS, NMB, POSB and MBCA among others.

But GetBucks is likely benefitting from niche-targeting of its mortgage financing. The bank's loans are structured specifically for low-income earners and have a 10-year tenure.

Unlike traditional mortgages, clients can access GetBucks mortgages as low as $2 000.Chief finance officer Paul Soko said the uptake of the mortgage programme has been positive. The firm's mortgages attract an 18 percent interest per annum and is payable in 10 years with zero percent deposit.

"As at 30 June 2017 mortgage loans were $592 127. The program performance has been very good and borrowers have been meeting their commitments when they fall due," he said.

"Outlook for mortgages is good as demand is strong with a great need for housing financing."

The programme is largely targeted at public service clients and small-to-medium enterprises (SMEs).Zimbabwe currently has a housing backlog of circa 1, 5 million.

And the Government – under the National Housing Delivery Programme (2014-2018) – is targeting to deliver 313 368 housing units or serviced stands, with the beneficiaries being the main contributors and Government providing land and bulk infrastructure services.

- bh24
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