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Zimbabwe Financial Institutions Resume Mortgage Loans - But Many Don't Qualify

  • Gibbs Dube

Banking sources said the FBC and CBZ building societies are now making loans from US$5,000 to US$100,000 to customers - on condition they earn at least US$1, 000 a month, ruling out many would-be homeowners

Zimbabwean building societies or savings and loan institutions have resumed making mortgage loans for the purchase of houses and building plots years after such loans were discontinued due to accelerating inflation.

Banking sources said the FBC and CBZ building societies are now making loans from US$5,000 to US$100,000 to customers - on condition they earn at least US$1, 000 a month. This rules out many would-be borrowers given that most Zimbabweans are making no more than US$200 a month as the battered economy attempts to rally.

Harare economist John Robertson told VOA Studio 7 reporter Gibbs Dube that such loans are also too expensive for many Zimbabweans because of the steep 14 percent interest rate demanded by lenders.

Consequently, Robertson said, beneficiaries tend to be Zimbabweans who are fairly well off.

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