Madagascar: BOA launches innovative new mortgage
Bank BOA Madagascar has launched a new housing loan called named Alkany that can be repaid over a maximum period of 17 years.Bank BOA Madagascar has launched a new housing loan called named Alkany that can be repaid over a maximum period of 17 years.
According to Midi Madagasikara newspaper, this has never been done before. Furthermore, the loan displays an interest rate of 12 percent per year, which is one of the lowest ever offered, according to the bank.
The interest rate varies between banking institutions and usually stands between 14.5 percent and 20 percent.
"In Madagascar, buildings belonging to individuals are often gradually built through savings, which often doesn't help achieving something viable. We are now offering this loan, which brings together the entire sum needed to build a dream home.
However, the owner must provide 20 percent of the project cost. The value of construction land is included in this contribution, "said Jacques Dilet, CEO of BOA Madagascar.
To facilitate the development of real estate, Malagasy banks strive to develop new innovative financial products, containing several measures to mitigate their risk.
L'Express de Madagascar reported that an Antananarivo bank will only offer credit at a preferential rate if the beneficiary
chooses a construction company approved by the financial institution.
Several banks also only unlock the money according to the progress of the building.