Despite Higher Interest Rates: Growing Demand for Housing Loans in Certain Banks

Despite higher interest rates, demand for housing loans in several Mauritian banks is on the rise. Banks like MCB and Bank One have reported stable or increasing demand for housing loans. SBM Bank has experienced a 74% increase in housing loan requests in the second quarter of this year compared to the first quarter. The demand is driven by initiatives like extended repayment periods, revised fee structures, and special loan offers. Borrowers aged 25 to 40 are seeking loans ranging from Rs 2.5 million to Rs 5 million, with average repayments accounting for 40-50% of their income.

The recent Key Rate increases have influenced borrower behaviour, with some postponing secondary residence or investment projects due to economic factors. However, government measures, such as the Home Ownership Scheme and Loan Payment Scheme, have encouraged property investment and supported housing loan demand.

These schemes offer 5% repayment on housing loans and provide Rs 1,000 per month to borrowers, reducing their financial burden. Banks like SBM Bank, MCB, and MauBank have introduced special programs to assist borrowers, offering preferential rates and capital moratoriums for existing loans.

Source: Defi Media