Affordable housing in Kinyinya, Gasabo district. A teacher will choose between building own house or buying existing houseg
The Development Bank of Rwanda (BRD) has availed a package worth Rwf 20 billion, to help teachers access individual mortgage loans to purchase houses, through Umwalimu SACCO.
Both the administration of BRD and Umwalimu SACCO attest that this loan privilege will benefit more than 1,900 teachers to acquire houses in a program dubbed ‘Gira iwawe’, literally translated as ‘own your home.
Currently, Umwalimu SACCO has over 122 thousand members (teachers), most of whom still renting houses.
In this initiative, a teacher will apply for a construction loan, with a deduction of a half of his monthly salary, fully payable between 15 and 20 years, with 11% interest.
According to the Director General of Umwalimu SACCO, Laurence Uwambaje, this loan opportunity will enable the institution to boost loan awards to SACCO members on a long-term basis.
She said that a teacher with a Bachelor degree would get at least Rwf 10.8 million payable in 15 years.
In case the applicant wishes to pay back the loan in 20 years’ time, the accessible loan would be Rwf 11.9 million.
Teachers with other qualification would get a loan that fits their income.
Applicants are not asked for any collateral, apart from the house they intend to construct, within the time frame of the loan period.
The Chairman of board of directors for Umwalimu SACCO Gaspard Hakizimana said it has not been so easy for all teachers to access loans.
Hakizimana said: “We have been having insufficient loans to help a few teachers acquire home loans, but we hope that this new development shall enable a big number of them to get facilitated along the way.”
Kampeta Pitchette Sayinzoga, Chief Executive Officer, Development Bank of Rwanda said that the ‘Own your home ‘initiative was introduced by the government in collaboration with the World Bank, to help every Rwandan afford a home.
Kampeta further said: “Collaboration between BRD and Umwalimu SACCO has taken an advanced step. After the effective use of this Rwf 20 billion, there is no doubt that the SACCO will apply for more, as they wish.”
This product is open for teachers who want to either buy a house or construct their own.
