11.07.06

Seychelles raises house loan limits

Posted in Business and Economy at 6:55 pm by Robert Klien

The maximum amount a Seychellois family can get as usual house loan has been increased from R250,000 to R300,000. As to Home Improvement Loans, the upper limit has also been raised from R25,000 to R50,000.

These changes to loans available from the Housing Finance Company (HFC) were announced on October 23, 2006 by the Minister for Land Use and Habitat, Joel Morgan. The changes come into effect immediately.

The adjustments were necessary because of the increased costs of construction materials and labour as normal loans are meant to be affordable to the average families in Seychelles and payable during 23 years, attracting only 7% interest. However, Loans beyond R300,000 will  attract 10% interest as far as they are given to families with family monthly incomes beyond the average.

It is also worth mentioning that in the view of the major economic benefits Seychelles is getting from investments on reclaimed land, the Seychelles government is considering the reclamation of more land as it is running out of available land for economic activities on our reclaimed land. So, it is carrying out the study regarding the cost-benefit analysis, economic benefits and the available areas that can be used for reclamation.

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