Economic experts have bemoaned low uptake of mortgage or housing loans despite the reduction of interest rates and availability of facilities.
Zimbabwe is experiencing a marked drop in mortgage interest rates, with a survey carried out by the ZBC News showing that the three main banks in the market are now charging interest rates ranging from 9,5 percent to 14 percent per year compared to more than 20 percent per year they were charging some few years back.
Despite the drop in the lending terms, it has emerged that few people are taking up the loans on the back of tight requirements.
An economist, Mr Persistence Gwanyanya said relaxation of the terms is important.
“The need to harness more loans for growth is therefore critical in this economy,” he said.
Another economic analyst, Dr Abel Mubango said limited savings for industries and households have also resulted in the low uptake of facilities, adding that coming up with a clear cut structure on the loans will go a long way in stabilising the market.
The housing market is being considered an important element in sustaining socio-economic needs under the country’s economic blue print, ZIMASSET.