Standard Bank, Metropolitan in housing deal

MASERU – STANDARD Lesotho Bank has collaborated with Metropolitan Lesotho to unveil a pension backed housing loan targeted at benefitting low income earners.
It is also easily accessible to organisations which insured their employees under the Pension Fund Policy at Metropolitan.
The new product, unveiled yesterday in Maseru, allows employees to easily apply for home loans at Standard Lesotho Bank using 70 percent of their pension fund as security.
Moeketsi Ntiea, from the Department of Employee Benefits at Metropolitan Lesotho, said the pension backed housing loan scheme is an alternative form of housing finance where the loan is secured by a retirement fund savings instead of life policy.

He said they provide annual benefits statements for their members to keep abreast of their savings every year.
This, Ntiea said, will help members to assess their eligibility for the housing loan.
“We are trying to help Basotho who cannot afford housing loan,” he said.
’Maleteka Moshabesha, Head of Personal Banking at Standard Lesotho Bank, said the scheme is in response to feedback  from clients regarding housing loans.
Moshabesha said they heard a cry from Basotho and they approached Metropolitan to come up with a scheme that would help Basotho in remote areas secure homes.

Azael Makara, from the Department of Credit at the bank, said the scheme will accommodate every person and allow people in remote rural areas to build their houses.
“This product will allow the lowest income earners who cannot afford to build the houses to access housing loans,” he said.
Makara said they have designed the product to make it easily accessible and affordable.
He said the requirements for the new product are accessible to ensure that clients do not rake in expenses before applying for a housing loan.
Even the rates are lower than normal loans, Makara said.

Makara said the housing loan will allow customers to build new houses, buy or renovate old ones.
He said for building and house improvement, they have designed the scheme in such a way that it will enable customers to use proof of land ownership where there are no leases especially in remote areas.
Makara said customers who are applying for less than M500 000, especially those in peri-urban or rural areas, will only have to provide housing sketch while above M500 000 will have to provide a proper house plan.
He said for house purchases, customers especially in the remote areas, will only need an agreement between the seller and the purchaser attested by the local chief instead of a deed of sale drawn by an attorney.
The institution still accommodates short-term contractors.

Refiloe Mpobole