Good morning i have a property in calabar that is very close to unical containing 12 single rooms and two self contains.i wanted demolishing it so i can erect a standard hostel for student.maybe a two storeys containing upto 30 self contains.so i had plans of keeping it as a collateral,get money from a bank and erect the structure but am just scared if bank can offer good sum of money.pls bankers in the house i need ur advice.

Itiaba007:
Good morning i have a property in calabar that is very close to unical containing 12 single rooms and two self contains.i wanted demolishing it so i can erect a standard hostel for student.maybe a two storeys containing upto 30 self contains.so i had plans of keeping it as a collateral,get money from a bank and erect the structure but am just scared if bank can offer good sum of money.pls bankers in the house i need ur advice.

The maximum amount a bank will likely give you as loan is 50% to 60% of the open market value of the property.

Notwitstanding the fact that you are providing collateral most banks prefer to give cashflow backed loans these days.

What this means is that you must have a verifiable source of revenue from which you can service the loan until the project is complete and starts generating income

We're u able to get the loan