Mwananchi Credit’s Land Financing is a loan facility that targets low-income earners by removing the affordability barrier to owning land by assisting qualified applicants in acquiring it at affordable monthly instalments. Kenya’s real estate market is on the rise, with affordable housing one of the biggest interests for local and foreign investors. However, owning land as an investment or for your dream home can be quite expensive. Even a small plot of land is likely to cost you anywhere from Kshs 500,000 to Kshs 1,000,000.
Kenya has historically had a high rate of land fragmentation, and this has slowed the country’s development. Fortunately, with the increasing focus on agribusiness and real estate development, new financing solutions have arisen to help address the problem of expensive land in Kenya.
Moreover, with the adoption of M-Pesa for payment transactions, obtaining credit has never been easier or cheaper in Kenya. With these factors combined, there are now many affordable options for those looking to purchase land in Kenya or invest in acreage to begin a farm business venture.
What is land financing?
Land financing pertains to the loans that allow borrowers to buy a plot of land. The types of land that can be financed include raw land, unimproved land and improved land. These types of lands are available in Kenya for buyers to take advantage of. This includes using it for land speculation, building your dream home on it or a commercial building.
Typically land loan lenders require hefty down payments with high-interest rates. This is because the risk is high due to the significant amount of investment necessary for a plot of land. The borrower then repays the loan over an agreed-upon repayment period with interest every month. Also, there may be collateral involved that helps mitigate the risk of loss for the lenders. For a specialized loan, this may be the plot of land itself.
Does Mwananchi Credit provide the best land financing services?
Mwananchi Credit Ltd. has been in the financing and loan providing business for many years. We have helped alleviate our clients’ financial stress with our range of loan facilities. Their raving reviews and testimonials speak for themselves, which you can find all over the internet. We have a range of loans that allow you to find a financing solution tailored for your specific situation. Similarly, you can find loans that can serve as land financing options. We will talk about each of these so you can find one that suits your situation.
With that said, it is time to get into the loans suitable for land financing. These are:
1. Logbook Loans
Logbook loans are our most popular loans that allow you to obtain a loan with your car as collateral. Typically, money lenders offer only 30% of the car’s value, but we offer up to 90%. In this way, you can get up to Kshs 25,000,000 in cash, depending on your vehicle. This includes its specifications, whether old or new, and other factors to determine its market value. This amount is ideal for purchasing land in the real estate market of Kenya, as you will find plots of land around these amounts.
You can get logbook loans if you own a fleet of cars, whether they be private or commercial cars. This can allow you to get a heftier amount in one loan. You then repay the money to us with interest rates as low as 1.6% with flexible repayment periods. The great thing about this loan is that you can get it even if you have a bad credit history, as this loan is secured against your vehicle.
What are the requirements for logbook loans?
We try to keep our requirements to a minimum to ensure as little hassle for you as possible. Therefore, the minimum requirements for obtaining a logbook loan are the following:
- Original vehicle logbook (car, motorbike, matatu or lorry)
- Applicant’s KRA PIN
- Applicant’s original national ID Card
- Two coloured passport size photos
- Bank statement of six months
- Comprehensive insurance certificate cover.
Once the loan has been approved, you can access the loans within only 6 hours. Therefore, if there is a piece of land that you are eyeing, then you can get some instant cash with logbook loans. After all, time can be of the essence in business.
2. Title Deed Loans
Title deed loans allow you to obtain a loan amount against a title deed as collateral. This title deed represents the ownership of property. The loan amount will depend on the property’s value and will typically not exceed 40% of its market value. However, we provide ideal loan terms with flexible repayment periods of up to 24 months with an APR as low as 20%. This makes title deed loans excellent for salaried employees that own some form of property. Additionally, it can allow landowners to obtain more funds to expand their land assets, leading to more profit. After all, you can use this loan for personal and business purposes.
What are the requirements for title deed loans?
The requirements and eligibility criteria for title deed loans are:
- Applicants must be salaried employees or self-employed professionals/non-professionals.
- If the applicant is a salaried employee, the age should not be more than 60 years at loan maturity.
- If the applicant is a self-employed professional or non-professional, the age should not be more than 65 years at loan maturity.
- Six months certified bank statement
- KRA copy of the applicant
- ID copy of the applicant
- Coloured passport size photos
- Sale agreement
- Proforma invoice
- A title deed that is clear, marketable and free of any encumbrances.
The bottom line
The real estate market in Kenya continues to grow at an exceptional rate. This makes being a landowner an excellent business opportunity. Being a landowner can also provide security and allow you to live in your dream home. However, buying land requires a significant investment that not everyone can afford. Saving up is an option, but that can take a long time. This is why land financing loans can be a great option, as they allow you to obtain a loan amount to buy a plot of land.
Mwananchi Credit is a leading, credible credit company in Kenya that has a wide variety of loans suitable for alleviating financial stress. Similarly, our logbook loans and title deed loans can be excellent options for your land financing. Our loans have exceptional interest rates and flexible repayment periods, ensuring that you can come out on top. If you’re eyeing a piece of land, look no further than Mwananchi Credit Ltd. No land is expensive in Kenya when you get financing options with us!