1st Housing Finance Tanzania commences operations
Tanzania’s first Housing Finance Company Limited – 1st Housing Finance (Tanzania) Limited - is commencing operations.
The company has been sponsored by Bank M Tanzania Plc, who is partnered by the International Finance Corporation (IFC), Washington, the private sector arm of the World Bank; Housing Development Finance Corporation Limited (HDFC), the largest housing finance company in Asia, the Karimjee family and Sanjay Suchak in establishing the mortgage finance company. 1st Housing has been issued a licence by Bank of Tanzania on 18th of July 2017 to commence Housing Finance business in Tanzania under the provisions of Banking and Financial Institutions Act, 2006 (Cap. 342 R.E. 2002).
1st Housing was incorporated under Tanzanian laws on 13th of July 2016 and its paid-up capital stands at TZS 21.80 billion.
Speaking at the launch, Omar Msangi, Chief Executive Officer of the company, articulated that Bank M partnered with renowned international partners like IFC and HDFC and reputed Tanzanian business families with a view to enter into this attractive housing finance segment in Tanzania. 1st Housing is the first dedicated Housing Finance Company in Tanzania with a focus on providing long term housing solutions to the citizens of Tanzania.
The CEO mentioned that 1st Housing aims to distinguish itself from the market by offering the lowest interest rates for mortgages in the country. The company has fixed its Prime Lending Rate (PLR) at 15 per cent. This will be the rate at which 1st Housing will be lending to its prime customers.
Omar Msangi added that 1st Housing, being the pioneer in the housing finance market, would begin operations by offering four new mortgage products viz. for purchase of a home, for improving an existing home, for extending an existing home and for financing the equity in a home. Some of the products being offered are novel in the Tanzanian market.
Another feature which would really set 1st Housing as the leader in the market would be the offer for giving mortgages with tenor upto 20 years. As per the CEO of 1st Housing, this feature is expected to make home loans very affordable in the management of monthly cash flows of home seeking families.
Omar Msangi emphasised the customer focus of the company by stating that 1st Housing is coming to the market with a guaranteed turnaround time of 24 hours for processing of any application for mortgages.
1st Housing will commence operations from it’s offices at 19, Barack Obama Drive, Dar es Salaam. The company has plans to open branches across the country in a short timeframe.