Pan Asia Bank ‘Nivasa’ housing loans back again

Tuesday, 6 May 2014 00:01 - - {{hitsCtrl.values.hits}}

Pan Asia Banking Corporation PLC has been in operation for 19 years and is considered as one of the fastest growing banks in Sri Lanka. It possesses a network of 77 branches and offers a full range of retail, SME and corporate banking products and services. Following are the excerpts of a brief interview held with Pan Asia Bank Assistant General Manager Naleen Edirisinghe explaining the reasons for promoting the ‘Nivasa’ housing loan scheme with a renewed focus. Q: What made Pan Asia Bank consider promoting the Nivasa housing loan scheme? A: The Nivasa housing loan scheme has always been a popular product in our portfolio, however was not actively promoted last year as our focus was more on several other asset products. However, due to high public demand for housing loans, we revisited the product parameters and decided to promote the Pan Asia Bank Nivasa housing loan scheme again with several benefits to the borrower. Q: What are your unique selling propositions? A: We value our clients’ desire to own a house, which is a dream for many and our unique selling proposition has always been the speed and flexibility of the service. So, even with the Nivasa housing loans we offer a speedy service and a flexible approach, allowing customers to have fast access to money to meet their housing needs. We are looking at first disbursement within 10 days provided all documents are in place. Our loan could be to buy a land and build a house, buy an already completed house, or for a second house. Q: How is the interest rate calculated for Nivasa housing loans? A: Nivasa housing loans are offered with a variable interest rate coupled to the gross Treasury bill rate which is reviewed every six months. This allows customers to benefit from low interest rate environments such as now. Q: Can you describe the demand that led to reconsider the re-launching? A: Most of the Sri Lankans are now eager to own a house rather than renting one as in the past. Pan Asia Bank Nivasa housing loan scheme will enable them to own a house of their own providing them the freedom and independence that come with living under their own roof. From a business perspective, housing loan defaults are negligible compared to other categories of business loans which make it an attractive business opportunity for the bank as well. Q: Do you provide additional benefits along with the loan? A: We are currently looking at tie-ups with several leading companies relating to housing industry to obtain discounts for Nivasa customers. Q: Is there a target group for Pan Asia Bank’s Nivasa housing loan scheme? A: We mainly target monthly wage earners living in Sri Lanka and certain categories of Sri Lankan migrant workers. Sri Lankan migrant workers should open a NRFC account with us to borrow. Other than these two categories we will also consider credit worthy business persons as well. Q: Is there a ceiling for the amount you can borrow within a particular period of time? A: We grant Nivasa loans up to a maximum of Rs. 25 million and the minimum will be Rs. 500,000. We lend up to 100% of the BOQ value when the customer owns the land and in other cases allow customers to borrow up to 75% of the BOQ value. Repayment period will be 25 years and is allowed till the borrower turns 60 years. However, any exceptions will be considered depending on situations acceptable to the bank.