Maendeleo Bank avails US$0.87m in house upgrade loans

TANZANIA – Maendeleo Bank Plc has issued a total of US$0.87m (TSh2bn) for more than 600 low-income earners in Dar es Salaam for upgrading of houses in a mortgage programme, reports IPP Media.

This is new loan package designed to support low income earners in all areas where they are to stay in a conducive environment, help government to improve housing in Tanzania with emphasis on durability of the houses, standard of Hygiene, comfort and convenience of the houses, affordability and capacity building.

People keen to access loans or building materials for house improvement the minimum loans ranging from US$217.56 (TSh500,000) to US$13,053 (TSh30m) per person and the interest rate charged on it in accordance with their needs.

The bank also issues loans to people who want to connect electricity, solar power in their houses and water well drilling to help them improve their residence

The bank’s Managing Director Ibrahim Mwangalaba said that the loans were issued through Micro Housing Loan since 2018 to September this year to help people stay in good houses.

“Customers willing to access Micro Housing Loan, we provide loans and building materials to people in accordance with their needs because we want them improve their houses,” he noted.

“As bank we want to see all houses of low-income earners has good plastering, floor, best iron roofing materials, windows, doors, have good toilet facilities, connecting to electricity or solar power and other issues,” he said.

Highlighting on Micro Housing Loan, he said this is a unique product introduced for better housing for better healthy to the communities.

“We have decided to come up with this package after conducting a research in Dar es Salaam and discovered that majority of people are low-income people, but they don’t have enough funds to improve their houses although they want to live in best houses.” He noted.

The houses that they have is not durable, has rough floor, majority lack toilet facilities, their houses require constant repair particularly of the roof while the remain houses has rough floor that attract insects because they don’t have enough funds for house improvement or build a new one.

“As I speak to you, since we have begun to issue micro housing loan in Dar es Salaam more people have begun to improve their houses and even connect electricity and install solar power,” he lauded.

Established in 2013, the bank is owned by the Evangelical Lutheran Church in Tanzania-Eastern and Coastal Diocese.

Maendeleo was registered as a limited company in February 2011 before changing to a public limited company in June 2013 when it was listed at Dar es Salaam Stock Exchange’s Enterprise Growth Market window.

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