BancABC muscles into mortgage loan arena

Staff Writer | Thursday October 20, 2011 00:00

 

With most of the country's eight commercial banks already competing with the country's statutory banks for room in the mortgage loan arena, BancABC hopes its competitive edge will secure a niche in the market.Managing Director Jito Kurian said the bank's home loan was offered at zero deposit, meaning BancABC will provide 100 percent finance for new homebuyers. The competitive edge is unique in that most mortgage loans involve the debtor paying a deposit, usually 10 percent, for the issuance of credit.

'While the bank offers 100 percent finance for new home buyers, customers (elsewhere) are often required to make a downpayment of 10 percent, which is almost impossible to have during these tough financial times,' he said.'We believe this is a hassle-free mortgage that allows just about everyone to own a piece of Botswana. This is what empowerment is all about. We are mindful of our nation's ideals of creating a better Botswana by 2016. This is our small contribution towards capacitating our clients towards moving nearer to our vision as a nation.'

Kurian added that the launch of the mortgage loan was timely because 'the market has never been tougher'. He explained: 'People need homes; people need to access money; people want to feel comfortable within the financial commitments they have already made. We are just coming in as a fresh bank to breach the gap within the financial market.'

Kurian said there was room for affordable, easily accessible and diverse home loans. Describing the market as 'huge,' he said there was considerable potential from prospective first-time buyers 'who need a financial partner that can complement their aspirations'.

A wholly-owned subsidiary of the BancABC group, BancABC established its first retail branch in Botswana in the first half of last year, quickly growing its deposit and loan book. With three branches in Botswana, the bank has already earned its keep in the group, whose other branches are in Zimbabwe, Tanzania, Zambia and Mozambique.