How Dfcu Bank encourages home ownership with secured personal home loans

Uganda has the third highest population growth rate in Africa and a significantly high rate of rural to urban migration. These trends underscore the need for more housing. dfcuBank recently launched a campaign to encourage home ownership.

Miranda Bageine Musoke, dfcuBanks Head of Personal Banking says more about the campaign.

Tell us about this new campaign making home ownership possible.

dfcuBank has launched a home lending campaign aimed at boosting home ownership among its clientele in Uganda and the Diaspora, through the provision of affordable financing solutions. Through this campaign, we are offering existing and potential customers the opportunity to purchase homes at an interest rate of 16% per annum for Ugandan 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 dfcusknown real estate development partners.

This campaign also makes it possible to buy land. Is it still at the same interest rate? Please share more information.

Yes. In addition to real estate loans, this campaign also makes it possible to acquire land. For the purchase of land, the Bank offers secured personal loans at an interest rate of 16.5%.

Even better, the Bank won’t charge a fee for loan redemptions and will also offer customers a 30-day grace period for a month of their choosing.

So why this campaign? What is the objective of dfcu Bank?

First of all, I’m sure you know that Uganda has the third highest population growth rate in Africa and a considerably high rate of rural to urban migration. These trends underscore the need for more housing.

As dfcuBank, we always aim to make more possible. This campaign aims to empower individuals and businesses who want to make home ownership a reality. Through this campaign, we have created home ownership options that include access to properties purchased from our property developer partners, access to home loan financing to purchase the properties of their choice or access to a secured personal loan to purchase land.

When does it end?

The campaign will run until mid-January next year, 2023.

Briefly explain what the … grace period … means for this particular campaign.

Upon obtaining the dfcuHome loan, customers will have the option to choose a month (30 days) of their choice, during which they will not pay the required installment on their home loan. We believe that this time granted to them will enable them to

How much can I borrow to buy a house?

This is determined by a number of factors which include; your current level of income and debt, your employment status and your credit history in relation to the value of the collateral. What dfcu can promise you is that we will work with you to create the best package that will make you a homeowner without causing undue strain on your finances.

How much money should I deposit?

For the purposes of To buythe Bank will contribute up to 85% of the market value of the house, the balance being the contribution of the customers.

For Constructionthe Bank will contribute up to 100% of the forced sale value of the property, the shortfall, if any, will be the contribution of the clients.

What are the interest rates offered for dfcu home loans?

We offer financing in UGX and USD, at 16% and 8% respectively.

How long does it take to obtain financing for the purchase or construction of a house?

The expected time is between 10 and 14 working days.

What types of home loans does dfcu Bank offer?

As a holistic product, dfcuHome loans have four sub-products, namely building houses, buying houses, refinancing and releasing equity.

Does this offer extend to Ugandans in the diaspora?

Oh yes it does.

We have arranged multi-currency offers that cater to payments made in Ugandan Shillings (UGX) and also those in US Dollars (USD). We are aware that many clients who work in the diaspora are looking for suitable and affordable properties back home. With the dfcu Real estate loan campaign, we offer specific solutions, designed to meet the needs of several clienteles.

One last word ?

Yes. I encourage Ugandans here and those in the diaspora to take advantage of these tariffs to buy houses. Let me also add that customers who buy homes from sellers with whom dfcu The bank has partnerships will receive 60% of the loan amount within 24 hours, provided they submit fully signed mortgage documents, an original copy of title to the bank and a bank purchase guarantee.