*What is national housing fund/scheme*


A lot of people collect their payslips at the end of the month, go through the deductions and often see 2.5% of their salary as contribution to the National Housing Fund or National Housing Scheme. Very few ask their employers to explain what the National Housing Scheme is about. They just see the deduction as another conduit through which government gets their money. Well, I'll take a couple of minutes to explain the National Housing Scheme.

The National Housing Scheme is a Scheme introduced by the Federal Government in which Employees of companies in the organised private sector are expected to contribute 2.5% of their monthly salary to Federal Mortgage Bank of Nigeria. This allows Employees to can access the fund through a Loan. This loan is a Maximum of 15 million Naira at the rate of 6% interest repayable over a period of 30 years. Its that simple (well in theory)

The Scheme allows access to a substantial sum to help provide affordable residential houses for Nigerians (especially those in the low and medium income bracket).

One very important benefit of the scheme is that the Loan gotten is at a fixed rate 6% interest per year for the entire time it takes to repay the loan. We know that the least Nigerian Banks can give is 20%.

To Apply for the Loan is easy too. An Applicant should make sure he/she has contributed into the scheme for at least 6 months. One must also provide evidence of regular income. You apply through aPrimary Mortgage Institution (PMI)who forwards your application to the Federal Mortgage Bank of Nigeria.

You should visit the Federal Mortgage Bank of Nigeria Website to have an updated list of Required documents to apply for the National Housing Fund Loan.

The Loan will be deducted from the salary of the beneficiary on a month basis.

A question most of the people reading this will ask is: "Do i need Collateral for the Loan?". Well, the Property acquired acts as Collateral for the Loan you got.

I hope i've been able to summarize what the National Housing Fund/Scheme is all about and our to access it. You can leave comments if you require more information.

*EGC & ASSSOCIATES*
www.egcandassociates.org

lawyer pls move dis

Just came across this now, thanks for the information, how soon or what is the duration of getting approval for the loans after application?

How about the deductions already on our payslips , does it add up to the loan ? Thank you for your response