John Odyek
23 August 2008
opinion
Kampala — A loan can help you process a land title, which you can use to get a loan to help develop your plot.
AS many people seek to acquire land continues, there is a smart way of doing this: getting a land loan.
Since land is an asset that gains value with time, there is no risk of losing your initial investment. A number of banks have come out to offer land loans to help individuals lease land or process land titles.
Christine Kyeyune Kawooya, dfcu Bank's business development manager, advises individuals to take advantage of their recently introduced land loan facility. Kawooya states that the dfcu land loan is designed to simplify the process of buying land.
There are many benefits of the dfcu land loan and that offered by similar financial institutions:
Flexibility in payment. You can agree with the bank on the amount you want to repay the loan.
You can access the loan at any time depending on your income.
Repayment period. The repayment period is up to four years which is a fairly good time to make such an investment.
Interest. The interest on the dfcu land loan is charged on a reducing balance of 20% per year. The reducing balance method is where interest on the loan is charged on balance of the loan remaining at the end of the month.
Once the loan is approved the payment is made directly to the person concerned, thus saving you the risks of carrying huge amounts of cash.
Once you identify the land you want, you sit back and leave all the hard work to the banks.
Conditions for obtaining a dfcu land loan:
You must be between 18 to 65 years of age.
Financing is restricted to mailo, freehold and leasehold land.
You can apply for the land as an individual, with your spouse or jointly with other applicants as long as the joint incomes satisfy the requirements.
Standard arrangement fees apply. These include stamp duty, valuation, registration and arrangement fees.
All customers will be required to show proof of payback.
You should have a savings or current account with the bank in question.
Nature of land. The loans are usually extended for the purchase of undeveloped land.
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