The First National Bank Zambia-FNB has launched the Vacant Land Loans, a financing solution to help individuals purchase undeveloped titled land from as low as K50,000 up to K1.5 million.
Speaking at the official launch, attended by the Zambian Business Times-ZBT FNB Zambia Head of Customer Value Proposition Timothy Mabula, revealed that the product is designed to meet the needs of aspiring homeowners, investors, and developers.
“Qualifying customers can access financing from K50,000 up to K1.5 million, which will be subjected to affordability assessment and applicable lending criteria and customers can also benefit from repayment terms of up to 10 years , providing the flexibility needed to invest in their future with confidence”, said Mabula.
Interestingly, Mabula said non-scheme customers may qualify for up to 100% financing for loans below K650,000, and scheme customers can also qualify for up to 100% financing for loans below K750,000.
“The loan tenure must not exceed 72 months for 100% financing to apply, as non-scheme customers can qualify for 100% for loans below K650,000 and loans below K750,000 for scheme customers.”
Mabula noted that for customers who choose the longer-term repayment exceeding 72 months, the maximum loan-to-value will be reduced.
“For facilities where the tenure exceeds 72 months, the maximum LTV is reduced to 90%, meaning the customer may need to contribute a deposit, and customers who qualify for 100% financing may not need a deposit, but where the applicable Loan-To-Value is below 100%, customers will need to provide evidence of their equity contribution or deposit,” said Mabula.
He added that customers benefiting from repayment terms of up to 10 years (120 months) will be subjected to approval.
Some of the documents required include bank statements and offer letters or sale agreements for the land.
“Customers intending to apply for the vacant loan product will have to complete and sign a loan application form, provide the National Registration Card (NRC) or valid identification, three latest payslips, a letter of employment or employment confirmation, a copy of the certificate of title, and proof of deposit/equity contribution where required,” said Mabula.
He disclosed that at the start, the vacant land loan will be available to salaried customers only, and all applications are subject to FNB’s credit assessment, affordability checks, and lending criteria.
By Justine Phiri
