Owning a plot of land is the dream of many Kenyans. Oftentimes, though, this is a dream that is never realized. The biggest hindrance is getting the money to invest in land. You see, whereas there are very cheap plots that one can buy, these are usually in far flung, deserted areas and have no real value. Neither will they appreciate, nor will they give you communal or agricultural value.
On the other hand, quality parcels of land will require investments of couple of hundreds of thousands, sometimes millions.
There are ways, though that you can go around the financial barrier and acquire your dream plot. One of these is through financing. However, you will need to be strategic about how you access this financing to keep your costs and payment obligations affordable.
One of the most affordable options you will get in the market is the Plot Loans package that is offered by the NCBA Group.
Let us take a look at the features of this financing product. To begin with, the plots that are eligible range from urban locations such as Nairobi and Mombasa to locations in small towns and rural areas.
If you have inadequate funds to buy, the bank will financing you up to 70 per cent. This means that for a plot going at Sh. 500,000, you will only need to raise Sh. 150,000. You will then get repayment periods ranging from 3 years to five years.
Interestingly, the bank has capped the minimum amount it will finance at half a million shillings in a bid to ensure that you will also target high value plots that will appreciate for future disposal, or value plots where you can set up your own home or even rental houses.
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The NCBA Group also has concurrent financing package that finances you to buy a plot and build at the same time.
“Our buy and build financing package will enable you to purchase a piece of land and undertake construction on the same piece of land simultaneously using the same loan facility,” says NCBA in a statement. With this package, you will be offered up to 100 per cent financing on your project, with flexible terms and repayment periods.
Under this buy and build financing package, the minimum construction loan amount you will get will be Sh. 3 million. Interestingly, the NCBA loans for construction have a maximum repayment period of up to 25 years.
