Zambia National Building Society disburses K139 million worth of loans during first hal of 2017
THE Zambia National Building Society (ZNBS) disbursed over K130 million worth of loans between January and June, 2017.
ZNBS managing director Joseph Chikolwa said the total loans disbursement between January and June, 2017 was K139 million compared to over K46 million disbursed during the same period in 2016.
Mr Chikolwa who was responding to a press query explained that the bulk of these loans were being used by clients to purchase land and construction of houses.
“Although these loans are unsecured/ salary backed, the deductions of repayments are through standing order instructions. The portfolio has also been insured against loss arising from loss of employment, death and permanent disability,” he said.
Mr Chikolwa said the Memorandum of Agreement signed by the society with the Public Service Management Division (PSMD) for refinancing of public service employees loans and with Mopani Copper Mine (MCM) influenced the demand for loans.
He explained that this led to an increased uptake of personal loans from civil servants and miners respectively.
Mr Chikolwa also said the mortgage portfolio for the society currently stood at 1,212 mortgage accounts with a value of over K177 million.
And the society disbursed K14 million worth of mortgages during the period under review.
He said the society had disbursed K14 million mortgages so far in 2017 compared to over K21 million disbursed in 2016 during the same period.
He said that the lower uptake of mortgages was due to the higher interest rates obtaining during the period in 2017 of 22.5 per cent per annum.
This is compared 2016 over the same period during which the interest rates were at 19.5 per cent per annum.
“However, interest rates have started to trend downwards and ZNBS expects that these rates will fall further.
“The Zambia National Building Society is also re-looking its mortgage model to make it more “user friendly” and to attract more customers’ especially first time home buyers, the youth and women,” he said.
He also said through its public awareness and financial literacy campaigns, the society had been able to raise awareness on the need to use funds borrowed productively and for home ownership or investment.
Mr Chikolwa said the campaigns included reaching out to the vulnerable in society, women and the youths respectively.
ZNBS managing director Joseph Chikolwa said the total loans disbursement between January and June, 2017 was K139 million compared to over K46 million disbursed during the same period in 2016.
Mr Chikolwa who was responding to a press query explained that the bulk of these loans were being used by clients to purchase land and construction of houses.
“Although these loans are unsecured/ salary backed, the deductions of repayments are through standing order instructions. The portfolio has also been insured against loss arising from loss of employment, death and permanent disability,” he said.
Mr Chikolwa said the Memorandum of Agreement signed by the society with the Public Service Management Division (PSMD) for refinancing of public service employees loans and with Mopani Copper Mine (MCM) influenced the demand for loans.
He explained that this led to an increased uptake of personal loans from civil servants and miners respectively.
Mr Chikolwa also said the mortgage portfolio for the society currently stood at 1,212 mortgage accounts with a value of over K177 million.
And the society disbursed K14 million worth of mortgages during the period under review.
He said the society had disbursed K14 million mortgages so far in 2017 compared to over K21 million disbursed in 2016 during the same period.
He said that the lower uptake of mortgages was due to the higher interest rates obtaining during the period in 2017 of 22.5 per cent per annum.
This is compared 2016 over the same period during which the interest rates were at 19.5 per cent per annum.
“However, interest rates have started to trend downwards and ZNBS expects that these rates will fall further.
“The Zambia National Building Society is also re-looking its mortgage model to make it more “user friendly” and to attract more customers’ especially first time home buyers, the youth and women,” he said.
He also said through its public awareness and financial literacy campaigns, the society had been able to raise awareness on the need to use funds borrowed productively and for home ownership or investment.
Mr Chikolwa said the campaigns included reaching out to the vulnerable in society, women and the youths respectively.