Steward Bank cuts interests rate, offers housing development mortgage

Steward Bank cuts interests rate, offers housing development mortgage
Published: 09 August 2017 (741 Views)
STEWARD Bank has cut its interests rate to below eight percent and joined the bandwagon of institutions that offer mortgage facilities to clients for housing development.

The bold move is likely to excite the market given widespread concern over the high cost of finance by businesses. Most banks are charging an average 12 percent following a directive by the Reserve Bank of Zimbabwe. In the past most banks charged up to 40 percent interest, which has been blamed for high levels of non-performing loans.

Speaking at the official opening of the Steward Banks' Gweru branch on Saturday, chief executive officer, Dr Lance Mambondiani, said the Econet subsidiary has been awarded a licence by the regulators to offer mortgage facilities.

"We have seen a lot of developments in terms of housing, our peers at National Building Society (NBS), FBC Building Society are very aggressive in this area and doing a great job.

"We are not a building society but we have thought of assisting our customers who have entrusted us with banking services," said Dr Mambondiani.

"We have been authorised by the regulator to offer mortgage facilities to our customers hence soon we will be in the market offering our customers with the finance."

He said that since his bank had acquired a licence it was setting aside capital for this development and will soon start offering loans to their customers.

"As for now we are cleaning up house so that we know we have the full capacity of the product that our customers will consider as relevant to their needs.

"In terms of the geographical planning we have looked into two segments, which is the national and the diaspora market. Our customers are also into the diaspora so we also need to consider them," said Dr Mambondiani.

"We are doing mortgage finance differently in supporting what is being done by the building societies because it is something that is at the core of every family so we want to be part of the journey."

Meanwhile, the bank has reduced its lending rates from 12 percent ceiling in line with the central bank guidelines.

"We have reduced our rates to as little as below eight percent on long time lending. We want to allow our customers to repay without struggling," he said.

- Chronicle

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

MDC-T drama: We have learnt very little about the past 37 years

by Hopewell Chin'ono | 23 February 2018 | 8 Views

Grace Mugabe is being harrassed, says Mugabe

by Staff reporter | 23 February 2018 | 13 Views

Ramaphosa forgives Peter Ndoro for 'killing' him

by BBC | 23 February 2018 | 22 Views

South Sudan to hang former South African colonel

by BBC | 23 February 2018 | 15 Views

British couple kidnapped in South Africa

by AFP | 23 February 2018 | 15 Views

Zim revives fuel pipeline deal with Botswana

by Staff reporter | 23 February 2018 | 16 Views

Fresh row over command agriculture

by Staff reporter | 23 February 2018 | 15 Views

MDC-T succession war, violence and tribalism

by MUCKRAKER Twitter: @MuckrakerZim | 23 February 2018 | 15 Views

MDC-T violence simply barbaric, unacceptable

by Faith Zaba | 23 February 2018 | 13 Views

Mudzuri seeks legal opinion

by Staff reporter | 23 February 2018 | 15 Views

Chamisa digs in

by Staff reporter | 23 February 2018 | 17 Views

MDC-T succession battles more political than constitutional

by Staff reporter | 23 February 2018 | 14 Views

Mugabe says, 'Mnangagwa government is illegal'

by Staff reporter | 23 February 2018 | 21 Views

'Lacoste cabal' has captured MDC-T

by Staff reporter | 23 February 2018 | 16 Views

What ZRP had to say about yesterday's shooting and riots

by Staff reporter | 23 February 2018 | 25 Views

'How G40's power-grab plan collapsed'

by Staff reporter | 23 February 2018 | 72 Views

Looting at Tsvangirai's burial

by Staff reporter | 23 February 2018 | 74 Views

'Zacc cops' kidnap RDC boss, demand ransom

by Staff reporter | 23 February 2018 | 51 Views

Woman dies after testimony in church

by Staff reporter | 23 February 2018 | 64 Views

Sangoma unleashes baboon on defaulting clients?

by Staff reporter | 23 February 2018 | 50 Views

Man drops abusive wife for sweet 16

by Staff reporter | 23 February 2018 | 34 Views

Bulawayo Bomber ventures into acting

by Staff reporter | 23 February 2018 | 32 Views

Bosso, Dembare rekindle rivalry in ZNA final

by Staff reporter | 23 February 2018 | 30 Views

You are not good in bed'. . . hubby's mistress tells pregnant woman

by Staff reporter | 23 February 2018 | 47 Views

Man impregnates stepdaughter

by Staff reporter | 23 February 2018 | 29 Views

Sangoma reverses menstrual spell, fined $200, cow for witchcraft

by Staff reporter | 23 February 2018 | 28 Views

Hubby's 'all-night prayers' shake marriage

by Staff reporter | 23 February 2018 | 31 Views

Pirate taxi hits, kills Grade 2 pupil

by Staff reporter | 23 February 2018 | 28 Views

Legalisation of shebeens: Who benefits the most?

by Langalakhe Mabena/Nkosilodumo Ndebele | 23 February 2018 | 30 Views

Hubby forces wife to sleep in kitchen

by Staff reporter | 23 February 2018 | 31 Views

Busted cheat pummels wife

by Staff reporter | 23 February 2018 | 33 Views

Bulawayo producer making headlines in Jozi

by Staff reporter | 23 February 2018 | 25 Views

Outrage over shebeen legalisation

by Staff reporter | 23 February 2018 | 28 Views

Chiefs find base in Luveve

by Staff reporter | 23 February 2018 | 27 Views

Coach fined for indecent assault

by Staff reporter | 23 February 2018 | 25 Views

WATCH: Obert Mpofu, Mliswa clash

by Staff reporter | 23 February 2018 | 36 Views

2017 civil service bonus dates announced

by Staff reporter | 23 February 2018 | 26 Views

Contaminated fuel shuts filling station

by Staff reporter | 23 February 2018 | 15 Views