Letshego Bank Namibia (LBN) is set to start offering home loans as part of its product offering after it completed registering two bonds with the deeds office.
The LBN home loans are being funded by a N$448.2 million (US$30 million) financing facility secured by the bank last year from the International Finance Corporation (IFC) to increase access to affordable housing finance to 4 000 Namibians.
“LBN successfully registered two bonds at the Windhoek Deeds Office, Ministry of Agriculture, Water and Land Reform on 07 December 2021 through the assistance of Jacobs Amupolo – Lawyers, Notaries and Conveyancers. This implies that applications can be made at any of the local branches from where the assessment process starts,” said Dr. Ester Kali, Country Chief Executive Officer of LBN.
This comes as an IFC delegation visited LBN this week for a meet-and-greet and to continue discussions on affordable housing solutions.
“Our strategic purpose is clear – we want to improve lives across the communities where we operate. Increasing access to simple and appropriate financial solutions, for more individuals will enable us to deliver on this promise. By partnering with global institutions like IFC, who share our vision of achieving social impact through sustainable commercial strategies, we can unlock exponential value and potential for us to do more. This is truly an exciting partnership and indeed the year of reimaging where we are shifting gears in the delivering of our products and services to you, our valued customer. We appreciate the support, synergy and partnership that IFC brings to our strategy,” said Dr Kali.
Although 78% of Namibians have a bank account, only 12% of households have mortgage-financed homes, with the majority not qualifying for mortgages from commercial banks because they are often unaffordable.
LBN is part of the Letshego Group, an African retail services organization with operations in 11 markets in sub-Saharan Africa.
IFC is a member of the World Bank and works with partners across Africa to help increase access to affordable housing including supporting the development of sustainable and responsible mortgage markets.
