How to secure home and estate loans in Africa

Securing home loans for the purpose of investing in Africa taking Nigeria as an example, real estate is pretty easy if you have good standing with your bank.

In Nigeria, banks offer customers loans with repayment amount not exceeding one-third of the income of the customer. What that means is this.

·         When you have an account with a Nigerian bank and you have run that account continuously for six months, the bank is willing to give you a loan. The loan is given faster if your source of income is consistent.

For example, if you work for a large firm or company with reputation in the community, you could get a sizeable loan for real estate investing in about a week. So, when you find a property you desire, you can actually close the deal within two weeks.

So, the key is proof of income.

Second, the requirement that the bank cannot give customers home loans with repayment amount exceeding one-third of what they earn is actually a protection.

How?

Well, when you desperately need money, you tend to ask for more than you can chew . . . loans with repayment amount that may take over 50 percent of your income. If the banks allow that to happen, they actually help you jeopardize your ability to meet your family obligations. And you could get into serious financial crisis with the loan becoming a huge burden that won't go away.

In the next post, i will be showing you the tips to managing the home loans, so watch out!!!