Kampala — Housing Finance Bank has introduced a new product where customers will be able to get cash loans using their houses as collateral.

Mr Patrick Kabonero, the Housing Finance executive director, said the new facility is designed to enable property owners release equity in their properties to improve their liquidity position. The loans will range from Shs20 million to Shs200 million.

"Equity release is a way of unlocking the value of your property, without having to sell it," he said. The facility will apply to those whose houses are already mortgaged with the bank or those that are not. He said housing is the primary store of personal wealth for most Ugandan households and home equity represents the single largest asset held by most Ugandans.

"Therefore this product serves as one method of enabling property owners to gain access to credit for various reasons including: starting a business, purchasing high value assets, purchasing land or another house, and other costsm," he said.