Connect with us

Business & Loans

How To Get Loan From Federal Mortgage Bank Of Nigeria (FMBN)

Published

on

How To Get Loan From The Federal Mortgage Bank Of Nigeria (FMBN)

How To Get Loan From Federal Mortgage Bank Of Nigeria (FMBN)

Are you in need of a loan to fund your business or to acquire a home? if your answer is yes, then you are at the right place as we will be walking you through how to get a loan from the Federal Mortgage Bank of Nigeria (FMBN).

About Federal Mortgage Bank Of Nigeria (FMBN)

Federal Mortgage Bank Of Nigeria (FMBN) is the apex mortgage institution in Nigeria tasked with the responsibility of providing long-term credit facilities to mortgage institutions in Nigeria.

Federal Mortgage Bank of Nigeria (FMBN) was established in 1956, known then as the Nigerian Building Society (NBS), a joint venture of the Commonwealth Development Corporation and the Federal and Eastern Governments of Nigeria. Following the introduction of the Indigenization Policy, the Federal Government, by Indigenization Act [1973], acquired the NBS and consequently renamed it the Federal Mortgage Bank of Nigeria (FMBN).

Advertisement

[quads id=1]

The FMBN has numerous loan and credit facilities that are of big benefit to Nigerians, especially to low and medium-income earners. One of its biggest loan facilities is the National Housing Fund (NHF) which enables low-income earners who are not able to have a house, build a house of their own.

With FMBN, you do not need to be rich to have a house. All you need to do is tap into its credit facility and you can get the right financial assistance to build your own house and pay back easily in long term. In this article, we will cover all the loans from the Federal Mortgage Bank Of Nigeria (FMBN) and how you can benefit from them.

[quads id=1]

Advertisement

You may also want to read Top 10 Websites That Gives Quick Loans In Nigeria Without Collateral

Aims of The Federal Mortgage Bank Of Nigeria (FMBN)

Below are the mandates of FMBN:

  • Provide long-term credit facilities to mortgage institutions in Nigeria.
  • Encourage the emergence and promote the growth of viable primary and secondary mortgage institutions to service the need of housing delivery in all parts of Nigeria.
  • Mobilizing both domestic and offshore funds into the housing sector.
  • Link the capital market with the housing industry.
  • Establish and operate a viable secondary mortgage market.
  • Collect and administer the National Housing Fund in accordance with the provisions of the NHF Act.
  • Do anything and enter into any transaction which in the opinion of the Board is necessary to ensure the proper performance of its functions under the FMBN Act.

[quads id=1]

Federal Mortgage Bank Of Nigeria (FMBN) Loan Collateral Requirement

The loan requirement for FMBN loans differs. It depends on the kind of loan you seek. Generally, the collateral requirement is very easy and something anyone should get. For example, the collateral requirement for the National Housing fund is the property to secure the loan for. That is, the property that you are seeking a loan to build, you can use it as collateral!

Who Can Benefit From This Loan

Nigerians in all sectors of the economy, particularly those within the low and medium-income levels who cannot afford commercial housing loans e.g. civil servants, traders, artisans, commercial drivers, etc. Any intending beneficiary must be a registered contributor and up to date with his/her contributions.

Advertisement

[quads id=1]

How To Get Loan From Federal Mortgage Bank Of Nigeria (FMBN)

Follow these steps to get a loan from the Federal Mortgage Bank Of Nigeria (FMBN:

1. Decide on the type of loan that you want.

The FMBN offers different loan facilities to Nigerians. You need to decide which one is best for you. There is the NHF loan, Home renovation loan, estate development loan, and more. You can find details of these loans below.

2. Get your documents and requirements ready

Once you have decided on the loan facility that suits you, get all the requirements for that loan ready.

Advertisement

3. Apply

Once you have met the requirements, you can apply. In many cases you do not apply directly to FMBN, you apply through accredited Primary Mortgage Banks (PMBs). You can reach out to the PMBs to help with your application. You can visit their website for more information fmbn.gov.ng

[quads id=1]

Types of Loans Being Offered By The Federal Mortgage Bank Of Nigeria (FMBN)

Below are the types of loans offered by the Federal Mortgage Bank Of Nigeria (FMBN)

1. NHF Mortgage Loan

The NHF loan is given to Nigerians for the purpose of getting a house of their own. You need to be a contributor.

Advertisement

You have to be a contributor to apply.

Purpose

  • The loan shall be for the purpose of building, purchasing or renovating a residential
    accommodation
  • No loan shall be for refinancing

Who can apply

  • Any Nigerian above the age of 18
  • Applicant must be a contributor to the National Housing Fund for a minimum period of six months.
  • Applicant must have satisfactory evidence of the regular flow of income to guarantee loan repayment.

[quads id=1]

How to apply

  • The applicant is to apply through a duly licensed and accredited mortgage loan originator (MLO) of
  • his/her choice and not directly to the Federal Mortgage Bank of Nigeria (FMBN).
  • The MLO of the applicant’s choice must be accredited by FMBN to access the NHF facility.
  • Application forms for NHF loans are obtainable from the MLO

How much can you get?

A borrower is entitled to a maximum loan of fifteen million naira (N15, 000,000.00) or as determined
by the Bank

Advertisement

Interest rate

The interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6%
p.a.

You may also want to read List of Mortgage Banks You Can Easily Access Loans in Nigeria

[quads id=1]

Advertisement

2. Estate Development Loan

The EDL is a facility granted to private developers, State housing corporations, and housing cooperatives to bridge the housing deficit through mass production of houses for ownership by NHF contributors. The facility is granted at 10% interest with a maximum repayment period of 24 months. It is a facility devised to facilitate large-scale production of houses for sale to contributors at affordable prices and thereby, expand the availability of affordable housing in Nigeria. As a general policy of the Bank, houses produced through the EDL window should not exceed ₦15million in price and must be sold only to NHF contributors.

3. Construction Loan

The loan is to afford Nigerians an opportunity to access mortgage loans for the construction of homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to construct properties that are personally owned by them or through family ownership.

[quads id=1]

4. Home Renovation Loan

The loan is to afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of their existing homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to renovate or improve existing properties that are personally owned by them or through family ownership.

Advertisement

Who can apply

  • Any Nigerian above the age of 18
  • Applicant must be a contributor to the National Housing Fund for a minimum period of six months.
  • Applicant must have satisfactory evidence of the regular flow of income to guarantee loan repayment.

Purpose

To afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of
their existing properties which are personally owned by them or through family ownership

[quads id=1]

How to apply

Advertisement
  • At the Federal level, applications are aggregated by the Federal Government Staff Housing Loans
  • Board (FGSHLB).
  • At the State level, applications are aggregated by the relevant authority and forwarded to FMBN.
  • Employees in the organized private sector (including other government agencies and parastatals not
  • covered by the activities of FGSHLB) the applications are aggregated by the Permanent Secretary or
  • Chief Executive of the organization.

Things you will need

  • Copy of application form for the Loan.
  • Amortization Schedule (with the appropriate) Satisfactory credit checking is done.
  • Offer letter properly executed.
  • All Letters of Undertaking /confirmation were properly executed.
  • Evidence of up-to-date remittance of NHF contribution by the Applicant.
  • Proof of Beneficiaries up to date NHF Contribution.
  • Guarantor Form Appropriately checked.

How To Get Loan From Federal Mortgage Bank Of Nigeria (FMBN)

2 Comments

2 Comments

  1. Pingback: Shell Petroleum Development Company Recruitment 2021 - Apply Here - FlippStack

  2. Pingback: Young Entrepreneurs Leadership Programme 2022 - Apply Here - FlippStack

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Do You Want Latest Update?

X