CHD Bank offers home loans at 13 per cent interest
The Construction and Housing Development Bank is now offering loans to home buyers and builders at 12 per cent interest plus a one per cent service fee.
“We are financing both buyers and builders. Savings accounts must be opened at the bank to apply for a 13 per cent interest loan. Some purchasing documentation from both parties (buyers and sellers) is required to get a loan approved,” an official from the bank said.
The bank has not put a limit on loan amounts for individual borrowers, but it will consider each borrower’s credit limit.
“Those who are building homes can apply for equity loans as well. Property must be used as collateral. Loan terms will be between one and three years. We are not giving out loans to buyers who are purchasing units that are listed as having been developed by the government,” the banker continued.
The banker said that they know the financing period seems short, but in the future, when they work together with foreign banks for financial assistance, they promise to provide long-term loans.
Roughly Ks 1.5 billion has been lent to borrowers.
The CHD bank, directly supervised by the Ministry of Construction, was licensed by the Central Bank of Myanmar last July in accordance with financial rules and regulations.
The bank was launched with an initial capital of Ks 100 billion (US$103 million).