Dar es Salaam — Tanzania's first Housing Finance Company Limited - 1st Housing Finance (Tanzania) Limited - has commenced operations with its paid-up capital currently standing at Sh21.8 billion.
The financial institution which is sponsored by Bank M Tanzania Plc in partnership with the International Finance Corporation (IFC) - the private sector arm of the World Bank; Housing Development Finance Corporation Limited (HDFC) - India's largest mortgage lender; the Karimjee family and Sanjay Suchak; was licenced by the Bank of Tanzania since July this year but was officially launched on Friday, the firm said in a statement on Sunday October 22.
Speaking at the launch, the company's chief executive officer Mr Omar Msangi said the firm is the first dedicated Housing Finance Company in Tanzania with a focus on providing long term housing loans to the Tanzanians.
"1st Housing aims to distinguish itself from the market by offering the lowest interest rates for mortgages in the country. The company has fixed its Prime Lending Rate (PLR) at 15 per cent in which will be lending to its prime customers," he said.
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He added that being the pioneer in the housing finance market, it would begin operations by offering four new mortgage products; for purchase of a home, for improving an existing home, for extending an existing home and for financing the equity in a home.
The company starts operations in Dar es Salaam but has plans to open branches across the country in the future.