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. PURPOSE:
a) To assist eligible Seychellois citizens who do not own a house with a loan to construct
a house.
b) The loan is for first time home owners only.
c) The house should be used for residential purpose only.
2. MAXIMUM LOAN AMOUNT:
SCR850,000.00, depending on the applicant’s ability to sustain
and repay the loan.
3. INTEREST RATE:
a) Loan up to SCR500,000.00 is payable at an interest rate of 7% and above
SCR500,000.00 at 8%, but variable.
b) For applicant(s) with a net salary below SCR20,000.00 net per month, the applicable
interest rate is 6% of the loan amount.
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:
a) Maximum term of 30 years (360 months) though the loan should be fully repaid
before the retirement age (65 years).
b) In cases where there are joint applicants, HFC can consider an Extension of the
Repayment Term beyond the retirement age (65 years) of the older applicant, if all
requirements are met.
6. PERSONAL CONTRIBUTION: 5% of the loan amount is payable by the applicant(s) as personal
contribution, once the loan is approved. This applies to Praslin and La Digue cases as well.
7. MAXIMUM NET SALARY:
a) Applicant(s) should be gainfully employed and earning less than SCR30,000.00 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.
8. ELIGBILITY: Applicant(s) must be over 18 years old and should repay the loan before reaching
retirement age (65 years).
8. LOAN DISBURSEMENT: The loan is disbursed by instalments upon HFC’s Building Inspector’s
certification.
9. HOUSEHOLDERS’ INSURANCE: Upon reaching the roofing stage of the construction, 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 house
construction, until the loan is paid off.
10. SECURITY:
a) Permission from the land owner is required.
b) The loan is secured by a Charge on the land where the house is being built.
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 ID card, latest payslip, bank statement
with 6 months’ transaction, proof of address, approved house plan, 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.