New housing scheme for public servants
Pauline Dikuelo | Friday September 9, 2016 14:44
In an interview with BusinessWeek, the Minister of Lands and Housing, Prince Maele said they have decided to come up with the initiative to help government employees who cannot afford mortgages.
“Most of government employees do not have accommodation and cannot access mortgage loans from the banks hence why we thought this scheme would be ideal. This will help them to construct at least two and half-roomed houses and improve some of the houses they have,” he said.
The scheme, which started running last month comprises two loans, which include home improvement and turnkey development.
The home improvement loan is for public officers who already own a house and wish to make some improvements while the Turnkey one is available for those who own an undeveloped plot and wish to build a house.
The maximum amount that can be borrowed under home improvement is currently P60, 000 while for the turnkey is around P90, 000. The loan repayment is over a period of up to 20 years at zero percent interest.
However, over due repayments will attract a penalty of 10%.
“Public officers who are on salary grade D4 and below are informed that they can start applying for a housing loan under a housing scheme that is reserved for them with effect 1st August,” read an announcement by the ministry this week. Assistance under the scheme is subject to availability of funds or annual budgetary provision, as applicants will be funded on first come first serve basis.
“Where funds have been exhausted during a financial year, applicants who have not been funded will be informed and advised to apply for the next financial year once funds have been made available,” the statement reads. According to the announcement, the applicant must not have previously benefited from any government-housing scheme such as GEMVAS, SHAA or Botswana Housing Corporation (BHC) and applicants for turnkey development loans must be fenced and have water available.
In addition, applicants must be able to repay their loan before their retirement from the public service or at least their terminal benefits should at the time of compulsory retirement be sufficient to cover the outstanding loan.
Applicants must also meet the minimum take home requirement.