Loan description:

• Incremental Housing (IH) offers Wholesale Structured Loans for Retail Finance Intermediaries to broaden scale of impact and penetrate new markets and/or to on-lend to qualifying low- and middle-income households who want to increase house value by
• improving their homes,
• buying land or
• providing top-up credit for discount benefit or capital subsidy beneficiaries.
• IH loans range between R8,000 and R15 000

Target market:

• established and accredited Micro-Finance Lenders Retail Finance Intermediaries (RFI's) and/or Banks

Loan size

• Loan size minimum R10m, depending on the potential market, realistic projections and capacity to manage growth.
• Drawdowns to match disbursement of end-user loans

Loan Term

• Maximum of 5 years.
• Loan repayment period must match end-user loan profile.
• Lender to contribute a minimum of 20% capital adequacy of the total facility amount

Qualifying criteria and finance conditions:

• Intermediary's concept and philosophy in line with the NHFC's funding objectives
• The intermediary should be a (Pty) Limited
• Presentation of a detailed Business Plan covering:
• Background history, mission, objective(s) of the company;
• Product profile, marketing strategy and loan pricing.
• Satisfy NHFC that the intermediary is sustainable in the short to long term
• The intermediary has adequate management systems and policies to be able to originate and manage and collect end user accounts.

• Granting Terms:
• All drawdowns to match disbursement of end user loans
• All loans issued must be for incremental housing purposes
• The intermediary commits itself to submit monthly management accounts i.e. Income statement, balance sheet, cash flow statement and debtors aging analysis report