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R50m loan for EL-based finance company
Posted on: Thursday, 27 January 2005. Article source: Daily Dispatch
The National Housing Finance Corporation (NHFC) has reaffirmed its faith in locally based finance company Real People's commitment to low-cost housing with an additional R50 million loan.
This will open the low- and moderate-cost housing market further to earners with a monthly income of between R1500 and R7500.
With this facility the NHFC has now extended its total loan to Real People to R75m, says NHFC CE Samson Moraba.
Van Rooyen stressed that Real People planned to open up this housing market to all potential home owners across the country.
The initial R25m loan facility granted by the NHFC to Real People in January 2004 has been earmarked for incremental housing purposes.
Now for the first time additional funds for mortgages will be available to potential owners to buy houses in existing developments or build their own homes.
Van Rooyen said the focus would be to buy an existing house, the plans and pictures which potential owners could get from Real People's website.
He said the facility allowed the company to offer a service similar to that offered by banks.
"But we will brave the markets in areas where banks will not venture.
"This allows us to support the NHFC in its quest to improve the quality of life for all South Africans."
"Real People has in the past demonstrated to us that it is a well-run business and it also convinced us that it is passionate about lending and making a difference to these and other parts of South Africa."
Buffalo City executive mayor Sindisile Maclean who attended the signing congratulated the locally based group on its achievement and said he was grateful that the NHFC had agreed to the loan.
"Housing is a big problem in Buffalo City in particular, and South Africa in general," he said.
Van Rooyen said the payback periods for the loans, which will range between R20 000 and R150 000 at competitive prime-linked interest rates, ranged from eight to 15 years.
Moraba said he expected an estimated 600 housing units to be delivered to new owners within the next 18 months.
This will open the low- and moderate-cost housing market further to earners with a monthly income of between R1500 and R7500.
With this facility the NHFC has now extended its total loan to Real People to R75m, says NHFC CE Samson Moraba.
Van Rooyen stressed that Real People planned to open up this housing market to all potential home owners across the country.
The initial R25m loan facility granted by the NHFC to Real People in January 2004 has been earmarked for incremental housing purposes.
Now for the first time additional funds for mortgages will be available to potential owners to buy houses in existing developments or build their own homes.
Van Rooyen said the focus would be to buy an existing house, the plans and pictures which potential owners could get from Real People's website.
He said the facility allowed the company to offer a service similar to that offered by banks.
"But we will brave the markets in areas where banks will not venture.
"This allows us to support the NHFC in its quest to improve the quality of life for all South Africans."
"Real People has in the past demonstrated to us that it is a well-run business and it also convinced us that it is passionate about lending and making a difference to these and other parts of South Africa."
Buffalo City executive mayor Sindisile Maclean who attended the signing congratulated the locally based group on its achievement and said he was grateful that the NHFC had agreed to the loan.
"Housing is a big problem in Buffalo City in particular, and South Africa in general," he said.
Van Rooyen said the payback periods for the loans, which will range between R20 000 and R150 000 at competitive prime-linked interest rates, ranged from eight to 15 years.
Moraba said he expected an estimated 600 housing units to be delivered to new owners within the next 18 months.
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