France supports affordable housing in South Africa
The French Development Agency (AFD) has offered a subsidised loan of about R400 million (Euro 40 millions) to Nedbank in support of its home loan initiatives for low-income households.
The home loan forms part of a financial package developed by the French Agency for Development and Nedbank to increase access to affordable home loans in South Africa. Through AFD’s financial support, up to 3 500 previously disadvantaged households will become home owners. The home loan will cater for households in the R2 500 and R5 000 income bracket.
The AFD loan will be advanced at a competitively priced fixed rate. Due to the lower soft loan cost of funds, part of the funding will be used to provide financial education to borrowers. All customers will be assisted by a financial mentor from the moment they apply for such a loan until they have repaid it.
For more on this agreement, read Nedbank secures EUR40million for Affordable Housing.
See also France and South Africa sign a partnership agreement for more information on the Framework Charter for Partnership recently signed between France and South Africa.
For more information on AFD’s projects in South Africa, see Methane energy project in Durban funded by France and French agreement to improve water delivery.