Construction Loan
A Construction Loan is a tailored facility to finance the construction of commercial or residential properties.
Features
- Repayment spread over an extended period and matching the cash-flow providing repayment
- Medium to long term financing with tenure over 12 months and up to 7 years.
Basic Application Requirements
- Copy of the statutory documents (Statutes/Memorandum of Association and Articles of Association, Certificate of registration or a copy of identity card for individuals)
- Financial statements for 3 consecutive years (Balance sheet & Income statement) if it has been in operation. For the start ups we require opening balance sheet and income statement forecast.
- Cash flow projections for the period of the facility.
- Tax clearance certificate from the RRA no more than three months old
- Administrative documents for the house to be constructed (Deed Plan, Lease Contract and Building Permit)
- Bill of quantities for the construction works to be done
- Construction agreement with potential contractor
- Proof of applicant’s participation
- For property acquisition cases, we require a provisional sale agreement
- Proposed security and its valuation report
- An environmental clearance must also be provided from REMA for all factory premises.
