HFCL LOAN PRODUCTS

TYPES OF LOAN MAXIMUM LOAN AMOUNT MAXIMUM PERIOD OF REPAYMENT (YRS) INTEREST RATE

(VARIABLE)

 NET SALARY LIMIT CONTRIBUTION
Housing Loan 1,200,000.00 30 up to SR500,000 7%
above SR500,000 8%		 SR30K 7.5%
2nd Housing Loan 550,000.00 30 up to SR500,000 7%
above SR500,000 8%		 SR30K 7.5%
Land Loan 150,000.00 6 7% SR30K nil
House Extension Loan 100,000.00 5 10% SR30K nil
Major Renovation Loan 350,000.00 15 9% SR20K nil
Survey Loan 25,000.00 5 10% SR20K nil
Normal HIL 50,000.00 5 10% SR15K nil
Normal Re-roofing HIL 100,000.00 5 10% SR15K nil
Pensioner HIL 50,000.00 7 0% – nil
Pensioner Re-roofing HIL 100,000.00 7 0% – nil

Note Normal HIL & Survey loan – For Net salary above SR10,000.00, the Repayment term is 3 years

Contingency Fund:

1 Applicant – 4%

2 Applicants – 5%

 

HOUSING LOAN SCHEME

Under the Housing Loan Scheme, eligible Seychellois citizens who do not own a house are assisted with a loan to construct a house or purchase a property with an existing house.

 

  1. The loan is for first-time homeowners only.
  2. For house construction, the applicant must have a plot of land registered in his or her name and must have a clear and clean title.
  3. Applicant should be gainfully employed and earning less than SR30, 000.00 net per month (proof is required).
  4. Applicant must be over 18 years old and should repay the loan before reaching retirement age (63 years).
  5. In the case of self-employed, proof of income will have to be provided and also the business license.
  6. A minimum of 30% to a maximum of 40% of net income would be calculated as the monthly repayment installment.
  7. The maximum loan amount is SR1,200,000.00 and depends on the applicant’s ability to sustain and repay the loan.
  8. Loan up to SR500, 000.00 is payable at an interest rate of 7% and above SR500, 000.00 is 8% but variable.
  9. The applicant will have to contribute 7.5% towards the loan once approved. For Praslin and La Digue cases, the contribution is 5%.
  10. The house should be used for residential purposes only.
  11. The loan is disbursed by installments upon building inspector certification.
  12. The loan is secured by a first-line charge on the land where the house is being built.
  13. Applicants should be covered for death and permanent disability either by HFC’s contingency fund or a mortgage protection policy for the full value and duration of the loan from an insurance company.
  14. Once the house is completed it should be insured for fire and other special perils.
  15. The maximum loan term is 30 years but should be fully repaid before reaching retirement age (63 years).
  16. Required documents are the latest payslip, bank statement with 6 months’ transaction, approved house plan, quotation, ID card, and proof of income if self-employed.
  17. A processing fee of 0.75% of the loan amount is payable by the applicant at the time of interview for the loan.

 

SECOND HOUSING LOAN SCHEME

Under the Second Housing Loan Scheme, eligible Seychellois citizens who do not own a house and a plot of land are assisted with a loan to construct a house.

 

  1. The loan is for first-time homeowners only.
  2. Permission from the landowner is required.
  3. Applicant should be gainfully employed and earning less than SR30, 000.00 net per month (proof is required).
  4. Applicant must be over 18 years old and should repay the loan before reaching retirement age (63 years).
  5. In the case of self-employed, proof of income will have to be provided and also the business license.
  6. A minimum of 30% to a maximum of 40% of net income would be calculated as the monthly repayment installment.
  7. The maximum loan amount is SR550, 000.00 and depends on the applicant’s ability to sustain and repay the loan.
  8. Loan up to SR500, 000.00 is payable at an interest rate of 7% and above SR500, 000.00 is 8% but variable.
  9. The applicant will have to contribute 7.5% towards the loan once approved. For Praslin and La Digue cases, the contribution is 5%.
  10. The house should be used for residential purposes only.
  11. The loan is disbursed by installments upon building inspector certification.
  12. The loan is secured by a charge on the land where the house is being built.
  13. Applicants should be covered for death and permanent disability either by HFC’s contingency fund or a mortgage protection policy for the full value and duration of the loan from an insurance company.
  14. Once the house is completed it should be insured for fire and other special perils.
  15. The maximum loan term is 30 years but should be fully repaid before reaching retirement age (63 years).
  16. Required documents are the latest payslip, bank statement with 6 months’ transaction, approved house plan, quotation, ID card, and proof of income if self-employed.
  17. A processing fee of 0.75% of the loan amount is charged at the time of the interview.

 

LAND LOAN

  1. HFC assists people with loans for the purchasing of land either from the Government’s Land Bank or private market.
  2. HFC finances up to SR150, 000.00 only for the purchase of private land.
  3. Applicant should be gainfully employed and earning less than SR30, 000.00 net per month (proof is required).
  4. The interest rate is 7% (variable) for the full amount of the loan.
  5. Monthly repayment installment should not exceed 40% of net income.
  6. The loan is secured employing a first-line charge on the purchased land.
  7. The maximum repayment term of the loan is 6 years.
  8. Stamp duty and registration for the transfer of land should be paid by the applicant.
  9. The land to be purchased is to be used for construction of private dwelling only.
  10. A processing fee of 0.75% of the loan amount is charged at the time of interview for the loan.

   

  HOUSE EXTENSION SCHEME

  1. Through the House Extension Scheme, HFC assists people to extend their houses, in case of overcrowding.
  2. Only one HES loan per household is allowed.
  3. Applicant must be over 18 years old.
  4. Applicant should be gainfully employed and earning less than SR30, 000.00 net per month (proof is required).
  5. Applicants should provide a guarantor and if an applicant cannot provide sufficient proof of income then they will have to provide a co-applicant.
  6. The maximum loan amount is SR100, 000.00 at an interest of 10% (variable) and the maximum term on the loan is 5 years.
  7. The loan is disbursed by installment against the proforma invoice and upon the building inspector’s certification.
  8. Applicant must have planning approval for the extension.
  9. Applicant should provide latest payslip, bank statement with at least 6 months’ transaction, ID card and proof of income if self-employed.

 

COMPLETE RE-ROOFING SCHEME

  1. The purpose of the loan is for complete re-roofing ONLY and not for other renovation.
  2. Only one re-roofing loan per household is allowed.
  3. The maximum loan amount is SR100, 000.00 at an interest rate of 10% (variable) and a maximum loan term of 5 years.
  4. Applicants must be over 18 years of age.
  5. Applicant should be gainfully employed and earning less than SR15,000.00 net per month (proof is required).
  6. Applicant should provide a guarantor who is gainfully employed. If applicants cannot provide sufficient proof of income, they will also need to provide a co-applicant.
  7. The loan is disbursed by installments against proforma invoice/ quotation and upon the building inspector’s certification.
  8. Applicant should provide latest pay slip, bank statement with at least 6 months’ transaction, ID card as well as proof of income if self-employed.

                   

HOME IMPROVEMENT LOAN

  1. The purpose of the loan is for a house renovation, landscaping, rock blasting, etc., and not for the purchasing of household items.
  2. Only one HIL per household is allowed.
  3. The maximum loan amount is SR50,000.00 at an interest rate of 10% (variable) and the loan repayment term is 5 years for applicants earning under SR10,000.00 and 3 years for those earning above SR10,000.00.
  4. Applicant must be over 18 years old.
  5. Applicant should be gainfully employed and earning less than SR15000.00 net per month (proof is required).
  6. Applicant should provide a guarantor who is gainfully employed. If applicants cannot provide sufficient proof of income, they will also need to provide a co-applicant.
  7. The loan is disbursed by installments against proforma invoices and upon the building inspector’s certification.
  8. Applicant should provide latest pay slip, bank statement with at least 6 months’ transactions, ID card as well as proof of income if self-employed.

 

PENSIONERS’ HOME IMPROVEMENT LOAN

 

  1. The purpose of the loan is for house renovation, landscaping, rock blasting etc. and not for the purchase of household items.
  2. Only one HIL per household is allowed.
  3. The maximum loan amount is SR50,000.00.
  4. Interest does not apply (0%) and the maximum loan term is 7 years.
  5. Applicant must be a pensioner (63 years and older) and in receipt of a monthly pension.
  6. Applicant should provide a guarantor who is gainfully employed.
  7. The loan is disbursed by installments against proforma invoice and upon building inspectors certification.
  8. Pensioners may also be assisted under the complete Re-Roofing Scheme with the same terms and conditions except that the maximum loan amount is SR100,000.00.

 

  MAJOR RENOVATION LOAN

 

  1. The purpose of the loan is to finance the major and extensive renovation of an existing house ONLY. Works that will qualify for funding under this loan scheme are as follows:

A) Replacement/rehabilitation of structural elements, fittings & fixtures that have reached the end of their                          serviceable lifespan:

  • Re-roofing, repairs of eaves & eaves gutters, ceiling works
  • Replacement of doors & windows
  • Replacement of plumbing/drainage piping & fixtures, and sanitary fittings
  • Replacement of electrical wiring & fixtures
  • Structural repairs to cracks, underpinning works
  • Re-doing flooring (including installation of floor tiles)
  • Re-decoration & painting (restricted to re-plastering, painting of walls, wall tile installation only allowed internally for kitchen and bathrooms/toilet rooms)

B)Associated site works for ensuring the structural integrity of buildings and adaptation to climate change resilience:

  • Construction of retaining walls for safeguarding an existing structure
  • Construction of storm water drainage
  • Earth works & leveling
  • Re-construction of waste water disposal systems (including works for connection to municipal systems)

C)Home improvement works to cater to family extension needs & security:

  • Conversions to make houses disabled friendly
  • Installation of burglar bars

D)The qualifying works are considered under the new loan scheme if they are not covered under other loan products, OR are being implemented as a package with other works in the mentioned list which will make the threshold for other loan products to be exceeded.

 

  1. The applicant should be a Seychellois citizen and residing in Seychelles.
  2. The applicant should be above 18 years of age and in a gainful employment in Seychelles, and earning less than SR20, 000.00 net monthly.
  3. The applicant should be the owner of the house to be renovated and the land where the house to be renovated is located, can be charged.
  4. The loan is to be secured employing a charge registered against the land where the house to be renovated is located.
  5. The house to be renovated should be and is being used for private residential purpose only.
  6. If the applicant is already a loan account holder with HFC, the loan account should be older than 12years and have no arrears.
  7. Only one Major Renovation Loan per house is allowed.
  8. The maximum loan amount is SR350,000.00.
  9. The interest rate is 9% (variable) and the maximum loan repayment term is 180 months.
  10. The loan will be disbursed by installments upon building inspector certification.
  11. The house should be fully insured for fire and other perils with the financial interest assigned in favor of HFC, before the last installment of the loan is disbursed.
  12. The beneficiary of the loan should be covered for death and permanent disability either by HFC’s contingency fund or a mortgage protection insurance for the full value and duration of the loan from an insurance company.
  13. A detailed quotation of the renovation is to be provided by the applicant. Only the amount required for the renovation will be processed but limited to SR350,000.00.
  14. The loan will be considered as a separate loan even though the applicant is already a loan account holder with HFC.
  15. The applicant will have to provide latest payslip, bank statements with at least 6 months’ transaction, ID card and proof of income if self-employed.
  16. A processing fee of 0.75% of the loan amount will be charged and SR1000.00 for the visit fee.

 

SURVEY LOAN

 

  1. The purpose of the loan is specifically for the subdivision of land, intending to transfer the subdivided plot onto a first-time landowner.
  2. The land in question should qualify for subdivision. A pre-planning approval is required from the Seychelles Planning Authority.
  3. There should be no encumbrances registered against the land that will not permit the subdivision. If any, then approval for the subdivision will have to be sought.
  4. The applicant for the loan will have to be over 18years of age and a Seychellois citizen employed in Seychelles.
  5. The subdivided plot is to be transferred onto a first-time landowner.
  6. The maximum loan amount is SR25,000.00 per residential plot that will be created for first-time land owners.
  7. The interest rate is 10% (variable) and the maximum repayment term is 5 years if the applicant is earning less than SR10,000.00 and 3 years if the applicant is earning above SR10,000.00.
  8. The applicant for the loan must be gainfully employed, earning less than SR20,000.00 net monthly, and can sustain the loan.
  9. The applicant must provide a guarantor who is gainfully employed.
  10. If the applicant cannot provide sufficient proof of income, they will have to provide a co-applicant who will help with the repayment.
  11. An affidavit confirming the intention of the landowner for the transfer of the subdivided plot onto the first-time land owner is required to be signed by both the loan applicant and the person benefiting from the subdivision. A copy of the affidavit will be forwarded to the land’s office at MHILT to update their records.
  12. The beneficiary of the subdivided plot will not be eligible to benefit from land under the Government land bank or any permanent social housing assistance from Government.
  13. In case there is a restriction registered in favor of the Government against the land, the landowner will have to obtain necessary approval from the Government for the subdivision before the processing of the loan.
  14. The applicant will have to provide a quotation from a licensed surveyor who will be carrying the subdivision.
  15. The loan amount will be based on the quotation provided but limited to SR25,000.00 per residential plot to be created for first-time land owners.
  16. The loan will be disbursed in two installments to the surveyor; i.e. the first installment for the start of the subdivision and the 2nd/final installment upon approval of the subdivision by the Seychelles Planning Authority.
  17. The applicant will have to provide the latest payslip, bank statement with at least 6 months’ transaction, ID card as well as proof of income if self-employed.
  18. A processing fee of SR1000.00 will be applicable taking into consideration the preparation of the affidavit.