Housing and Home Improvement loan
Description
The Housing and Home Improvement loans are meant to enable members to either build their dream houses, or effect improvements on their homes such as purchasing solar equipment, drilling boreholes or just purchasing household appliances such as stoves, fridges and washing machines. The Housing and Home Improvement loans are linked to home purchase savings accounts, as well as the Monthly Savings account. Members are able to take out loans equivalent to six times their savings, and repay those loans in installments of up to six months for home improvement loans, and longer for housing loans, depending on the details.
Eligibility
A housing or home improvement loan will be given subject to the member's savings accounts and history, their repayment capacity as well as availability of funding. One needs to have been a member for at least one year before one can apply for a housing loan. It will also be subject to the availability of mortgage finance. Home improvement loans are accessible upon attaining the qualifying criteria, and subject to availability of funds.
Depending on the amounts involved as well as the modalities, we work with building societies to be able to advance housing loans. Properties purchased under this loan will remain mortgaged until the loan is fully repaid.
How to access
In order to access a housing or home improvement loan, you will need to:
- Be a member of both the SME Association of Zimbabwe, as well as the SMEAZ SACCOS.
- You must have savings that are at least one sixth of the amount that you want to borrow.
- (a) For Home Improvement loans, get a quote from the supplier. The supplier should be reputable, or a member of the Association.
(b) For Housing loans or loans for construction, you will need either an agreement of sale or bill of quantities indicating the amount required - Submit an application on the loan application form for processing.
- Your business will need to be assessed to determine your ability to service the loan. This is done after you become a member of the SME Association of Zimbabwe.
- You will be required to pledge collateral, or obtain guarantees from other members to cover the risk of default.
Terms and Conditions
- You will need to remain a paid-up member of both the SME Association of Zimbabwe as well as the SMEAZ SACCOS for the entire duration of the loan period.
- Should there be any missed installments, the SMEAZ SACCOS will have the right to either repossess the item(s) purchased, or to seize the security pledged. If the loan was guaranteed, then the guarantors will be required to make good on the missed installments
- Where relevant, insurance cover should be obtained for the property or asset under loan.
APPLY FOR LOAN
Click on the button below to apply for a loan. Note that only active members of the SMEAZ SACCOS can access the loan application page.
