The Bank of Kigali has launched a product suit to their customers’ needs, known as ‘Home Equity Loan’, that allows homeowners to borrow against the equity they have built up in their homes.
This is the amount that a customer’s home is worth, excluding any debt on it, in form of a mortgage or other loans.
With the new BK home equity Loan, customers will be allowed to borrow money up to 70% of the value of their house, to fund personal needs such as home renovations, car purchases, household items, and more.
According to BK Management, the loan is payable within 20 years and eligible customers are encouraged to visit any BK branch and the Mortgage Centre.
Since many bank clients have untapped equity in their homes, a home equity loan is a great opportunity to tap into.
The amount that a customer can borrow and interest rate depend on one’s income, credit history, and the market value of the home.
To be eligible for the BK home equity, a customer is required to provide documents which include an application letter, Identification documents (ID or Passport), Proof of source of payment, Valuation of the property and Collateral insurance.
Yearly Management fee, facility fee and application fee will be charged basing on the approved tariff.
In places where this bank service product has been in existence, many customers use home equity loans to implement vital plans like room addition, kitchen remodel, new flooring, among other improvements.