Can the developer arrange for loans from local banks? If so, what are the requirements?
Yes our company will arrange finance, but only on the extent that we prove to the bank that 50% of the construction has been completed and been paid for by the buyer and 50% will be paid by Bank. Construction and business Bank in Ethiopia provides mortgages for residential Houses and apartments. Under ideal conditions the bank can loan up to Birr 1.5 million per person provided the borrower covers a third of the total construction cost from his/her own source. The mortgage is payable within a maximum period of 15 years. However, its exact amount and duration is determined by taking into consideration the borrowers situation and monthly income, his or her age, marital status and situation of their general health. We would allow the bank to have first degree collateral on the title deed of the plot which the Houses or apartments value.
