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

THE FEATURES OF THE HOME RENOVATION LOAN ARE AS FOLLOWS:

The applicant shall be contributor to the NHF.

The maximum loan amount shall be =N=1Million, subject to the income limit of the beneficiary as well as the ultimate cost of renovation

The applicant will apply through the Federal Housing Board in the case of the Federal Civil Servants and through the Office of the Head of Service of the State or any other relevant authority recognized by the Bank (in the case of civil servants) and employees of the organized private sector.

Approved loan amounts shall be disbursed in a lump sum to the Federal Housing Board (in the case of Federal civil servants) and directly to the account of beneficiaries in the case of state civil servants and employees of the organized private sector, after acceptance of an offer and the fulfillment of conditions precedent to draw-down.

The loan tenor shall be a maximum of 4 years or an employee’s remaining years of service, whichever is less.

Repayment of the loan shall be through monthly repayment for a tenor not exceeding 4 years, via direct deductions by the FHB and the respective Head of Service/Accountant General’s office of the states or other relevant authority recognized by the Bank for private-sector employees.

Monthly repayment shall not exceed 33 1/3 percent of the applicant’s monthly salary/income Interest rate shall be 8 percent for the duration of the loan for FGSHLB and 6 percent for state Governments.

The facility shall not be available to any contributor who has enjoyed an NHF loan to build or buy a house.

The facility can be taken jointly by a couple, subject to an income assessment of both parties.

The loan can only be taken once in 5 years.

Applications are to be submitted with certified Bills of Quantities, indicating the amount required for the renovation.