BPC to provide housing loans in Angola
The Savings and Credit Bank announced on Thursday in Luanda that it will provide housing loans for property buyers in new cities being built in the country, such as Kilamba.The Savings and Credit Bank (BPC) announced on Thursday in Luanda that it will provide housing loans for property buyers in new cities being built in the country, such as Kilamba.
These loans will exclusively target new buildings, BPC Chairman Paixào Junior told Angop news agency.
He stated that the bank will provide money to those who do not own the necessary funds to access ownership and will offer them the chance to spread repayments out over a longer period.
"Commercial banks have been urged to support this governmental effort," he explained.
Only the BFA, BIC, BAI and BTCGA banks offer mortgages in Angola.
Lending for house acquisition is still low: in 2009, less than eight percent of housing credit by households came from banks, with the rest obtained from employers, savings or family and friends, according to housingfinanceafrica.org.
However, the sector is growing and according to figures from the National Bank of Angola, lending for housing picked up in August 2010 to €2 billion after reaching €651,8 million in July 2010.
The country's microfinance sector has seen some of the highest growth rates on the continent. Since 2007, BAI has offered a housing microfinance product known as KixiCasa.
Furthermore, the government established a Housing Investment Fund in 2008 to finance its programme of building one million houses over the next four years.