Wednesday
July 9, 2003
Government announces an increase in low-income housing loans
at minimum interest
Borrowers of small loans for the construction
of housing under the low-income category can now enjoy the
benefit of an increased loan at the same interest rate.
This announcement was made by Head of the Presidential Secretariat
and Cabinet Secretary Dr. Roger Luncheon at his weekly post
Cabinet Media briefing held at the Office of the President,
Georgetown, this morning, following Cabinet’s discussion
on the issue.
“Cabinet considered a recommendation from its Sub-Committee
on Finance dealing with loan for housing purposes and approved
an increase in the threshold from $1.5M to $2M,” Dr.
Luncheon said.
Government has an existing arrangement with some banks whereby
the financial institutions lend up to $1.5M to persons accessing
low-income house lots through the Ministry of Housing to construct
houses. The loans were offered at a marginally decreased interest
rate of between seven and eight percent
.
The new arrangement of an increased threshold will permit
“eligible lot owners to obtain bigger loans up to $2M,”
at the same interest rate.
The Loans can be accessed at the New Building Society and
Citizens Bank, Dr. Luncheon said.
Government’s intention is to make available to every
Guyanese an affordable plot of land and wherever possible,
make the process of constructing the houses earlier. To this
end, Government and some banks entered into this agreement
and to date many persons have accessed loans and in turn the
Administration grants the banks fiscal incentives.
Over the last decade, more than 50,000 houselots were distributed
countrywide and most of these lots are occupied today. This
has gone a far way in helping to improve the country’s
housing conditions.
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