If you have been considering purchasing or developing property, BBS Bank will be happy to advise you on how to go about it. BBS Bank currently charges an interest rate from as low as 7.25%.
The maximum repayment period is 25 years for individual borrowers. However, borrowers may choose to repay the mortgage in a shorter period depending on their ability to do so. It is required that in the case of individual borrowers the loan should be fully repaid by the time the individual reaches the age of 65. The maximum loan any borrower may qualify for depends mainly on three factors:
There are various types of loans that the bank may consider:
This loan allows you to purchase undeveloped land which has unrestricted ownership. Customers are given a period of seven years to repay the loan.
An ordinary loan is provided for the purchase of an already existing and complete house from any seller and the loan is secured by registering a bond favour on behalf of BBS Bank.
A building loan is provided to construct a new property, renovate and develop an existing property or finish an incomplete property.
An Industrial loan is provided to develop or acquire an industrial property. Commercial loans are acquired to buy or build shopping malls, office blocks etc.
Requirements for industrial loans and for commercial loans are the same. In addition to lending against urban immovable properties, BBS Bank also lends against the security of properties in rural areas (villages).
Borrowers are first required to convert their plots from customary rights to common law by obtaining a Tribal lease on the property and having the piece of land surveyed by registered land surveyors. This will, however, be subject to the applicant meeting the bank's basic requirements.
BBS Bank currently lends to both citizens and non-citizens. In the case of non-citizens, BBS Bank can only lend a maximum amount of the 75% of the securing property’s open market value. In the case of citizens, the normal maximum loan is 90% of the securing property’s open market value.
Further advance/Equity Loans is provided as an additional loan for the extension of an existing property or bond the same property to use the money for other property developments.
The requirements for a further advance application vary, depending on the purpose for which the loan is sought.