Major Renovation Loan

1. PURPOSE:
a) To assist eligible Seychellois citizens with the implementation of major and extensive
renovation of an existing house where they are residing.

b) The house to be renovated should be in use for private residential purpose only.

c) Only one loan under this Scheme is allowed per household.

d) Applicant(s) who is/are already a loan account holder with HFCL, is/are eligible for the
loan, as long as there is no default history. The loan under this Scheme will be
considered as a separate loan from the other loan facility.

e) Scope of works qualifying under this loan scheme are as follows:

i) 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).

ii) Associated site works for ensuring structural integrity of buildings and
adaptation to climate change resilience:
✓ Construction of retaining walls for safeguarding an existing structure;
✓ Construction of boundary walls for safeguarding the property;
✓ Construction of storm water drainage;
✓ Earth works & levelling;
✓ Re-construction of waste water disposal systems (including works for
connection to municipal systems);

iii) Home improvement works to cater for family extension needs & security:
✓ Conversions to make houses disabled friendly;
✓ Installation of burglar bars;
✓ Minor extensions, which are deemed part of the major renovation
(example renovation of kitchen, including extension)

iv) The qualifying works are considered under the 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.

2. MAXIMUM LOAN AMOUNT: SCR400,000.00, depending on the applicant’s ability to sustain
and repay the loan.

3. INTEREST RATE: 9% interest (variable) on the full amount of the loan.

4. DEBT SERVICE RATIO (DSR): A minimum of 30% to a maximum of 45% of the applicant(s) net
income would be calculated as the monthly repayment instalment.

5. MAXIMUM LOAN REPAYMENT TERM: Maximum term of 15 years (180 months) though the
loan should be fully repaid before the retirement age (65 years).

6. MAXIMUM NET SALARY:
a) Applicant(s) should be gainfully employed and earning less than SCR25,000.00 net per
month (proof is required).

b) In case of self-employed, proof of income will have to be provided, together with the
business registration certificate and license.

7. ELLIGIBILITY:
a) Applicant(s) must be over 18 years old and should repay the loan before reaching
retirement age (65 years).

b) The applicant(s) should be the owner of the house to be renovated.

8. LOAN DISBURSEMENT: The loan is disbursed by instalments upon HFC’s Building Inspector’s
certification.

9. HOUSEHOLDERS’ INSURANCE: Prior to the last instalment of the loan being disbursed, the
house should be insured for fire and other special perils by the applicant(s), with financial
interest in favour of HFCL, and thereafter renewed annually upon completion of the
renovations, until the loan is paid off.

10. SECURITY:
a) The loan is secured by a Charge on the land where the house is being renovated.

11. MORTGAGE PROTECTION: Applicant(s) 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.

12. REQUIRED KYC DOCUMENTS: Required documents are latest ID card, payslip, bank statement
with 6 months’ transaction, Planning Authority’s approval for the extension (where required),
quotation and proof of income, if self-employed, etc.

13. PROCESSING FEE: 0.75% of the loan amount is payable by the applicant at the time of
interview for the loan.

Click here to download the Major Renovation Loan application form