Ugandans are set to own homes under the new home loans campaign. The campaign is aimed at driving up Home Ownership in Uganda and the Diaspora, through the provision of affordable financing solutions.
The enhanced proposition gives existing and potential customers the option to purchase Homes at an interest rate of 16% per annum for Uganda shilling-denominated loans and 8% per annum for US Dollar loans. Customers can also access 60% of the eligible loan amount when purchasing Homes from dfcu’s known real estate development partners.
For the purchase of land, the Bank is offering Personal Secured Loans at a 16.5% interest rate. Additionally, the Bank will not charge fees for loan buyouts and will also provide customers with a 30-day grace period for a month of their choice.
Uganda has the third-highest population growth rate in Africa and a significantly high rural-to-urban migration. These trends underline the need for more housing units.
According to Miranda Bageine Musoke, dfcu Bank’s Head of Personal Banking, this campaign seeks to empower individuals and businesses who are keen on making Home Ownership a reality.
“Through this campaign, dfcu Bank has created options for home ownership that include access to properties purchased from our Estate Developer partners, access to Home Loans funding to purchase properties of their choice or access to a Secured Personal Loan to purchase land.
“We have also curated multi-currency offers that cater to payments made in Ugandan Shillings or United States Dollars (USD). We are cognizant of the fact that many customers who work in the diaspora are looking for suitable and affordable properties back home. With the dfcu Home Loans campaign, we are providing specific solutions, made to meet the needs of multiple customer bases.”
Bageine Musoke also noted that customers buying homes from vendors with whom dfcu Bank has partnerships will receive 60% of the loan amount within 24 hours, provided they submit fully executed mortgage documents, an original copy of title to the bank and a bank purchase guarantee.
According to a report released by the Centre for Affordable Housing Finance in Africa (2020), Uganda’s urban households will grow from 2.9 million in 2020 to 3.8 million in 2025—a total increase in housing needed of 180 000 units per annum.
