WINDHOEK – The favourable interest rates currently prevailing in Namibia have encouraged people to borrow more money from banks, First National Bank (FNB) Namibia has disclosed.
The bank says it has granted more home loans in the last financial year because of the lower interest rates. FNB’s Manager for New Business, Martha Swart, told Nampa in an interview at the Windhoek Show that her department’s performance would be positive if the rates remained stable.Currently, the commercial banks’ interest rate is above 11 per cent but the Bank of Namibia is expected to revise the rate in the next few weeks.Swart also attributed the increase in business to a new home loan, SwabouBond + 10, which was launched two months ago.The scheme is designed for home buyers who can afford home loan payments, but do not have the cash available to pay for deposits and transfer fees.Swaboubond +10 provides the client with a 100 per cent loan of the valuation amount, plus an additional amount of up to 10 per cent for other costs.She said the bank had not repossessed any properties because of failure by its clients to repay the loans.In its financial statements for the year that ended on June 30, the bank said net advances had increased by 15 per cent, mainly attributable to growth in home loans (16 per cent) and instalment sales (24 per cent).It said the good performance was driven by continued demand in the housing market, backed by improvement in personal affordability, consumer demand and corporate business.Swart said FNB approved about 300 property loans every month, which included home loans.According to her, the bank has continued to enjoy a market share of 46 per cent in home loans.Meanwhile, FNB Sales Consultant for Electronic Banking Bianca Richter said 80 per cent of the bank’s clients are now using Internet banking.-NampaFNB’s Manager for New Business, Martha Swart, told Nampa in an interview at the Windhoek Show that her department’s performance would be positive if the rates remained stable.Currently, the commercial banks’ interest rate is above 11 per cent but the Bank of Namibia is expected to revise the rate in the next few weeks.Swart also attributed the increase in business to a new home loan, SwabouBond + 10, which was launched two months ago.The scheme is designed for home buyers who can afford home loan payments, but do not have the cash available to pay for deposits and transfer fees.Swaboubond +10 provides the client with a 100 per cent loan of the valuation amount, plus an additional amount of up to 10 per cent for other costs.She said the bank had not repossessed any properties because of failure by its clients to repay the loans.In its financial statements for the year that ended on June 30, the bank said net advances had increased by 15 per cent, mainly attributable to growth in home loans (16 per cent) and instalment sales (24 per cent).It said the good performance was driven by continued demand in the housing market, backed by improvement in personal affordability, consumer demand and corporate business.Swart said FNB approved about 300 property loans every month, which included home loans.According to her, the bank has continued to enjoy a market share of 46 per cent in home loans.Meanwhile, FNB Sales Consultant for Electronic Banking Bianca Richter said 80 per cent of the bank’s clients are now using Internet banking.-Nampa
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