Housing Finance Bank has launched the ‘zimba mpola mpola’ incremental housing loan to unlock opportunities for Ugandans to attain affordable home ownership and financial independence.
According to statistics, the housing deficit in Uganda stands at 2.4 million housing units. Now Housing Finance Bank, a fully government owned commercial bank is championing the Sustainable Development Goal (SDG) 11.1 agenda; to ensure that by 2030, all Ugandans have access to adequate, safe and affordable housing, basic services and upgrade slums.
The bank has crafted a product targeting all Ugandans whether salaried or in the informal sector called the Incremental Housing Loan, in a 4 months’ campaign dubbed Zimba Mpola Mpola.
According to Michael Mugabi, the Managing Director at Housing Finance Bank, the bank now commands approximately 60 percent of all Ugandan mortgage accounts.
This new product, according to Mugabi presents an opportunity for more Ugandans to achieve their dream of home ownership through HFB, the leading mortgage partner.
“We are fully committed to bridging the housing deficit gap in the country and are always innovating ways to accomplish that. We introduced 100 percent financing to enable the purchase or completion of residential property, entered partnership with low-cost housing developers, paved way for flexible loan repayments and are finally launching to the public, the financing of Incremental housing projects,” Mugabi said.
Adding, “All the above initiatives are garnered towards closing the current 2.1 million housing units’ gap”.
The MD thanked their customer, a one Mandela who invited them into his home to break the fast together in Bukalango as a seal of their lifelong commitment to unlocking his and Ugandans’ dream of home ownership.
He said that with incremental housing loan, step by step construction is now a possibility for all.
“Whether you are salaried or a businessman, this product allows you to “kuZimba Mpola Mpola”. he added.
With this innovation, he said that anyone can now easily access Shs 200,000 to Shs 50 million in less than three days and repayable in three years.
This will help meet any incremental home building needs like land purchase, incremental home construction and home improvement needs like water-power installations, lavatory construction, painting, paving, etc.
He said that every Ugandan qualifies for this loan even those that are not Housing Finance Bank customers that is if you have these requirements.
• Valid Identification
• CRB financial card
• Proof of reliable source of income
• Security in form of land title, sales agreements, machinery, and chattels
• In case of construction; a house plan for titled land and development fee receipts for kabaka’s land
The product, according to Mugabi has been tested and there are over 500 beneficiaries through collaboration with Boda Boda Association, Market Vendors, primary teachers, MSMEs and other working Ugandans in related trade and every customer that gets this product will be given a tree.
“This is in line with the sustainable development goal 11 which is to drive sustainable cities and communities..” he remarked.