FMBN disburses N15.7bn home renovation loans

The Federal Mortgage Bank of Nigeria has disbursed N15.7bn to 19,169 beneficiaries in Nigeria under its Home Renovation Loan programme.

FMBN’s Managing Director, Ahmed Dangiwa, disclosed this on Wednesday in Abuja while presenting N640m cheques to 640 beneficiaries of the Federal Road Safety Corps under the bank’s home renovation loan scheme.

Dangiwa also said N1.8bn was approved for 195 staff of the FRSC as mortgage loans for the purchase of their own homes.

He noted that the total disbursements to the corps had risen to N1.2bn for 1,207 beneficiaries across the country.

The mortgage bank boss said the homes renovation loan window affords Nigerians who are contributors to the National Housing Fund an opportunity to access mortgage loans to renovate or improve their existing properties either personally or family owned.

He explained that unlike the regular mortgage, the process include the signing of a Memorandum of Understanding and execution of letters of undertaking by the various state governments, collaborating agencies and employers for the deduction and remittance of loan payments to the bank.

Dangiwa noted that the realisation of FMBN’s mandate had continued to suffer setbacks due to lack of access to land, inadequate funding for the housing sector, low income of prospective borrowers which affects affordability, among others.

He said, “In consideration of these challenges, it became necessary for FMBN to develop some quick-wins that will allow a greater number of Nigerians access to the National Housing Fund. Consequently, the FMBN Home Renovation Loan was introduced by the bank.

“While the bank continues to face considerable challenges particularly on its lack of adequate capital, all these indices indicate that we have performed creditably well in the discharge of our mandate given the lean resources at our disposal.”

Dangiwa added, “We have also given succour to Nigerians with the cancellation of equity requirement for NHF loans under N5m and a reduction in equity percentage payment to 10 per cent for loans from N5m to N15m from the initial 20 per cent to 30 per cent. This is bound to further boost the affordability of many Nigerians in accessing mortgages.”