Many Mauritians turn to banks to take out a home loan to finance the construction of a house. What do banking institutions offer them? Response elements…
Interest rates revised downwards, discount on application fees, loans without collateral… These are, among other things, some proposals from banks to attract Mauritians wishing to take out a loan for the purchase of land, construction or the renovation of a house. The Daily Challenge made the rounds of the banks.
At the State Bank of Mauritius (SBM), at the moment, a 50% discount on application fees is offered. This is for online applications for real estate loans to acquire a house or land or to build, expand, fit out and renovate a house. This is according to Anil Gujjalu, Head of Retail Banking Division.
The Mauritius Commercial Bank (MCB) currently offers a preferential interest rate of 1.80% for the first year and a rate from 4.90% in subsequent years. “It is valid for any request subscribed before October 31, 2018. The offer is subject to conditions of course”, indicates Dominic Provençal, Deputy Head of Retail.
At Bank One, applicants get a 50% discount on application fees and registration fees. In addition, refinancings above Rs 2 million are taken care of by the bank. Namely that for a mortgage of an amount greater than Rs 2 million, the interest rate in force is 4.90% for the first year. “It then goes to 5.10% for the entire duration of the loan,” says Shehryar Bakht Ali, Head of Retail Banking at Bank One.
For its part, the Banque des Mascareignes allows its customers to opt for a Consumer Loan (Personal Loan) with or without guarantee for minor renovation work. Ashish Gopee, Head of Sales, maintains that the loan can be granted for the long term (10 to 25 years) and allows for a repayment period of up to 25 years for the construction or purchase of a house, and 10 years maximum for the purchase of land. Foreign currency credit is spread over a shorter period, between 10 and 15 years, but with an interest rate of around 3.3% under conditions (Euribor +3.3%), he adds. .
These discounts and conditions attract customers. Moreover, our stakeholders maintain that applications for home loans are going well. “We are seeing an increase in requests for home loans. We receive about 100 applications for an approval rate of 70%,” concludes Ramakrishna Bhagavan, Head of Retail at MauBank.
MHC offers the lowest interest rate on the market
Deepak Balgobin, Chairman of the Board of Directors of the Mauritius Housing Company (MHC), argues that the interest rate for a Housing Loan at MHC is 1% for the first year. “The plan of the house is offered free of charge if the area does not exceed 150 square meters. Requests are processed within 10 days,” he says.