Barclays targets the middle-class

What you need to know:

The head of products consumer banking, Mr Oscar Mwamfwagasi said in Dar es Salaam yesterday that under the facility, the bank will issue mortgages of between Sh30 million and Sh500 million specifically to help people to acquire finished houses and equity release.

Dar es Salaam. Barclays Bank Tanzania yesterday unveiled its mortgage facility that targets Tanzanians with permanent employment as it targets middle income earners to snatch a pie of market share from existing lenders.

The head of products consumer banking, Mr Oscar Mwamfwagasi said in Dar es Salaam yesterday that under the facility, the bank will issue mortgages of between Sh30 million and Sh500 million specifically to help people to acquire finished houses and equity release.

β€œThe loans are specifically for ready-made houses. They are not meant for construction of new houses,” he said.

Loans will carry an interest rate of 19 per cent with a payment period of up to 20years,” he said.

The product is available to Dar es Salaam residents but will ultimately be rolled out countrywide.

To qualify, a customer will be required to deposit 20 per cent of the value of the house that he/she wants to purchase before the loan is issued.

Similarly, those seeking to purchase a second or third house will be required to put one house as surety while those buying for the first time will put the title deed of the house as surety.