LOCAL financier Merchant Finance Ltd (MFL) has disclosed a starting loans portfolio of $16million for its newly launched land subdivision loan product, approved to seven customers.
The product was one of two “innovative financial products” launched in Suva last Friday designed to “support existing or new landowners across the country” as MFL takes on the mantle of financing iTaukei business and investment initiatives through its Vanua Finance loans facility.
“Out of the seven, two customers have completed their subdivision and the remaining five are currently in progress,” MFL chief executive officer Veilawa Rereiwasaliwa said at the launch.
“In addition, Merchant Finance is working on the loan application for 10 more land subdivision projects worth $20million across the country.”
It expected this to help ease Fiji’s housing shortage.
“Increasing the demand for land subdivision development produces more job opportunities for engineers, laborers and other service providers,” Mr Rereiwasaliwa said.
“It also contributes towards a growing housing market which in turn stimulates economic activity.”
Key features of MFL’s land subdivision loan product are 100 percent financing for civil works, covering costs of infrastructure development and a Government-backed fixed interest rate subsidy for the first three years.
“Through the introduction of these financial products, Merchant Finance aims to finance up to 2000 lots over the next three years, contributing to an increased supply of land and housing solutions,” Mr Rereiwasaliwa said.
MFL also launched its land loan product, requiring a 10 percent deposit by customers and an interest rate of 10 percent on reducing balance with a loan term of up to 10 years.
