The Citizen (Dar es Salaam)
Damas Kanyabwoya
28 October 2009
Dodoma — The Government is working on efforts to lower interest rates on housing loans to enable the people afford decent accommodation.
The minister for Lands and Human Settlements Development, Mr John Chiligati told the Parliament here yesterday that the Bank of Tanzania (BoT) was already working with commercial banks to lower the interest rates that currently range between 18 and 20 per cent.
"The Government is also working with the World Bank to create the Mortgage Liquidity Facility that will offer long term, low interest loans to banks, which in turn will provide low interest housing loans to the people," he said.
He mentioned banks that have started offering housing loans as Stanbic Bank, Commercial Bank of Tanzania, Azania Bank Limited, International Commercial Bank of Tanzania limited, Kenya Commercial Bank and CF Union bank limited.
He was responding to a question asked by Ms Ruth Blasio Msafiri MP for Muleba North (CCM) who wanted to know what the Government was doing to ensure Tanzanians, especially those in non surveyed areas, had access to housing loans.
The MP also wanted to know how many banks already offer housing loans in the country.
Mr Chiligati said the laws that were enacted last year to crate legal frameworks for housing loans included the Mortgage Finance Act, and Unit Titles Act.
He said the Mortgage Liquidity Facility will be operational in January and will help to ensuring affordable housing loans to Tanzania. He mentioned other banks that will soon start offering loans as the CRDB, NMB, NBC and the Dar es Salaam Community Bank.
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