Souther African townships remain overcrowded (Pic. Getty Images)

DAR ES SALAAM – The TANZANIA Institute of Bankers has been holding a training course to enable its members understand ways to give out housing loans safely.

The DAILY NEWS says organisers of the FIVE-day-long workshop expect the effort to allow self-employed people access funds to build their own homes, unlike now when only salaried workers can do so.

It says the Institute understands financiers have mainly relied heavily on monthly salary deduction when giving mortgage loans, leaving out potential customers in the informal market.

AZANIA Bank Retail Banking Senior Manager JACKSON LOHAY says limited skills obstruct bankers when computing repayment schedules for non-salaried customers.

He has made the remarks during the introduction of the new course developed jointly between TANZANIA Mortgage Refinance Company and the TANZANIA Institute of Bankers.

Mr LOHAY says the lack of skills in the banking sector has denied self-employed citizens such as lawyers, civil contractors, consultants, businesspersons and others chances to build houses.

The DAILY NEWS says the senior financial expert has presented a paper entitled: An Overview and Challenges of Mortgage Finance in TANZANIA.

It quotes Mr LOHAY as saying the persistent accommodation problems can end through the new FIVE-day course, which aims to empower bankers deal with the issue of housing loans.

His paper reveals a variety of challenges ranging from land titles, building permits, unplanned settlements, and suitability for mortgage registration.

Mr LOHAY says another issue is home seekers prefer standalone apartments, hence the increasing demands for surveyed plots.

On other hands, banks are facing a number of credit risk challenges that include foreclosure, over financing to limit repayment, fraud, and underfinance, leaving developers with semi-finished properties.

Mr LOHAY says the problems push house developers to rely on monies they raise on their own and, as result, people see a number of semi-finished properties in their communities.

TANZANIA Mortgage Refinance Company Chief Financial Officer OSWALD URASSA says the expectation after the course is to produce skilled mortgage bankers with enough skills to issue loans to self-employed people.

The TANZANIAN financial expert says trainees will learn a process of arranging house loans using different score cards that help calculate the value of properties, loan sizes, and repayments./Sabanews/cam

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