Public Servant Housing Loans Scheme, Interest Rates and Requirements
Did you know about the Public Servant Housing Loans Scheme and the requirements for eligibility? Well, this piece of write up will present to a snapshot of what the loan scheme is about, interest rates applicable to loan amount. Without wasting much time, let’s dive into the real conversation.
Introduction
The public Servants’ Housing loans scheme was established by the NRC decree 319 with the intent to provide loans to public servants. This is to let them
- Build new homes or dwelling places
- Renovate existing residential properties
- Pay loan the amount involve in assets already purchased
- Or buy existing residential properties.
The NRC Decree 319 Act, 1975(1) enjoins the Board to grant and recover loans and to enter contracts and carry out programs for, or incidental or conducive for progress of the Act.
Mandate of the PSHLS Board
The Board was set up with the mandate of providing housing loan facilities to public servants.
Vision
To become the first option mortgage financing institution for all public servants in Ghana
Mission
The PSHLS Board is to assist public servant to construct new residential property, renovate existing ones , pay off loans or buy existing residential facilities through mortgage financing.
Features of the housing scheme
To be able to access this facility, one must be a public servant and permanently residing in Ghana and being a permanent employee of any public institution.
The facility provides an interest rate of 2.5% per annum on reducing balancing basis. The maximum loan amount a public servant can acquire shouldn’t be more than 10 times of the person’s gross salary.
Loan repayment
A public Servant shall not have more than thirty years from the time of application with monthly instalments taken from one’s salary. This amount shall be deducted at source. Meaning the employer has the right to deduct such amount every month from the borrower’s monthly salary.
Security of the loan
The facility is mortgaged to the Board, the title deeds and mortgage relating to the property, duly stamped and registered, is deposited with the Board. There is also an insurance package where the insurer will pay the whole outstanding loan amount when the borrower becomes incapacitated or died.
Features of the housing facilities the scheme offers
With the public servants placed in mind, the Board seeks to ensure that conducive environment is considered when acquiring the property. It comes with the following features.
- Apartments – Studio, 1, 2 and 3 bedrooms
- Semi – Detached – 1, 2 and 3 bedrooms
- Self – Compound Housing units – 1, 2 3 and 4 bedrooms.
The estimated housing unit price is pegged between $25,000 ad $80,000.
The current housing demand of the workforce population within the public service is about 1,600,000; which 90% of this number requires housing. As a result, the Board is projecting to provide over 200, 000 housing units in a space of two years. This will help to reduce the struggle public servants have to go through in securing accommodation.
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