1. INTRODUCTION

   Revolving Housing Loan Fund was established by the government through Circular No.8 of the year 1992 to combat the increasing demand for housing especially in urban centres, especially for civil servants. The fund is aimed at financing construction of new houses, renovation, completion of under-constructed, and purchase of houses for all government employees.

2. FUNDS ORGANIZATION STRUCTURE

   The fund is managed by Ministry of Lands and Human Settlements Development under the Advisory Board. The Board is made up of five members chaired by the Permanent Secretary of Finance. Daily activities of the fund are undertaken by a secretariat in the Ministry of Lands, Housing and Human Settlements Development

3. LEGIBILITY

   All government employees who have been confirmed in their employment under permanent and Pensionable basis are legible to apply and for the housing loan.

4. LOANS COLLATERAL

   The right of Occupancy (Title Deed) is the most important document in the mortgage loan processing Collaterals of the property being constructed

5. PROCESSING OF HOUSING LOAN APPLICATIONS

   Any civil servant can apply for and be granted a loan under the following procedures: The first step in the application of housing loan is the completion of an application form which is divided into three parts as follows:

   1. First part to be completed by the applicant
   2. Second part by applicant's employer
   3. Third part after been granted the loan by the chairman of Advisory Board- Permanent Secretary of Finance

   In addition to the application form, the applicant is required to attach the following documents

   1. Copy of the Title Deed.
   2. Copy of Building Permit
   3. Copy of Building Plans
   4. Construction Cost Estimates
   5. Copy of latest applicant's salary slip

   A complete application form and all other attachments should be submitted to the secretariat office in the Ministry of Lands, Housing and Human Settlements Development. The office is responsible for receiving and scrutinizing of all loan applications and forward recommendations to the Board for decision making. The Secretary of the Board will decided the amount to be given according to the stages of construction

6. ADMINSTRATION OF THE LOAN

   After the loan has been granted, the applicant will be required to sign the contract and mortgage the title deed of the respective plot. Then the secretariat will recommend the advancement of the loan in three phases. The applicants are also required to get fire insurance for the houses which are under construction.

   It is important to note that, the loan is a motivation to the civil servants to build their houses and it is not meant to suffice all the expenses of construction; hence there must be other individual initiatives to enable the completion of the expected building.

7. LOAN REPAYMENT

   The loan repayment period is determined by the year when the Title Deed was registered but not more than 30 years. The loan has interest rate of 3% per annum.

   Secretariat is responsible for supervising and ensuring proper maintenance of houses developed by using the fund. Secretariat is also responsible for conducting relevant site inspection and advice applicants on the construction standards.

   In a situation where a private (individual) contractor is involved, secretariat will monitor and supervise construction and recommend on stage payments from the initial stage to the final. The secretariat is also responsible for assessing rehabilitation requirements or completion of house already under construction and advice on loan amount to be advanced.

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