MFBs outstanding domestic loans hit N250 billion
By Niyi Olaoye
The recent report by the National Bureau of statistics (NBS) on selected banking sector statistics between first quarter of 2015 to second quarter of 2016 has revealed that the outstanding domestic loans/ leases issued out by the 976 Nigerian Mircorfiance banks stood at N249,930,279,000.00.
The report which was recently obtained by Business247 News Online also notes that the total domestic deposits they received at the end of the accounting period stands at N191.3 billion.
In another development , the report on 35 Nigerian primary mortgage banks in the last 18 months has shown that its outstanding domestic loans/ leases issued out was N78.10 billion.
Furthermore, PMIs total domestic deposits at the end of the accounting period also moved to N65. 611 billion while the total National Housing Fund (NHF) contribution received was N9.694 billion
Meanwhile, Dr Onabanjo Jogunola, President of Omega Housing Co-operative and Multi-purpose Society Limited located in Ikorodu, Lagos, has commended PMIs in the country for their great efforts in developing real sector in Nigeria.
He noted further that housing loan scheme is real and it’s working, contrary to many people opinion that the industry is not functioning. He pointed out that the fact that drivers, mechanics, traders and other artisans can all partake in the scheme if their fully understand it.
Jogunola stressed that as a trader or artisan who is interested in the PMI loan, what he or she need to do is to join a cooperative society, which must be approved by FMBN and registered with National Housing Fund (NHF). He added that the cooperative society must also be registered with the Registrar of Cooperatives in charge of the area within which the cooperative society is situated.
‘Independent individual can also access the loan by operating a monthly NHF contribution with an accredited mortgage bank, that is, a Primary Mortgage Institutions (PMIs) through which the FMBN loan can be applied for’, he explained.
Jogunola mentioned that a maximum of N15 million loan can be accessed. He said this loan can either be used to repair, build a house or buy a property in any part of the country.
According to him , mortgage banks grant the loan to individuals at interest rate of six per cent per annum for a period of 25 to 30 years, while the loan is given to cooperative society at interest rate of 10 per cent.
He said individuals must make the monthly contributions, minimum of N450 over a period of six months before the application stage. According to the FMBN, the housing loan is offered to individuals once in a life time.
Business247 News Online gathered that individual applying for the loan is also expected to make a down payment of 15 per cent of the approved selling price of the property or value of improvement. For instance, a person who applies for N5 million loan is expected to have down payment N750, 000 before he can apply for the Loan.
