Dfcu Bank seeks to boost home loan portfolio through property developers, slashes interest rates to 17 per cent
As a way to increase the uptake of its home loans, Dfcu Bank has accredited property developers from around the country, who can work with the bank to increase purchase of home using loans from the bank, thereby boosting the banks home loan portfolio.
Under the arrangement, sales staff of the accredited property developers will receive free monthly home loans training. This, Dfcu Bank said, is expected to drive up property sellers’ closing chances by 80 per cent, as well as grow their network base across the country.
Accredited property developers will also be able to access Dfcu customer base as prospects for home loans. Denis Kibukamusoke, Dfcu Bank's head of consumer banking said; “As part of this program, Dfcu Bank will offer the developers an opportunity to cross sell to its customer base of close to one million clients across its 67 branches.”
Besides, the property developers will also be given opportunity to network with the bank’s accredited service providers-lawyers and insurance providers who will offer their services to the network clients at discounted rates. This arrangement will increase sales and profitability of the property developers, while at the same time untying their capital.
Meanwhile Dfcu bank also announced a reduction in the interest rate for home loans from 20 per cent to 17 per cent for borrowers in Uganda Shillings, and 10 per cent for US dollar borrowers.
The partnership is also expected to fasten the process for homebuyers. “The enhanced home loans service will allow property developers to give feedback withIn 24 hours of receiving a lead; provide an indicative offer within 24 hours of receiving a financial card and bank statement and get an approval for a client within two days of receiving complete documentation. In addition, Dfcu Bank will get developers funds within10 working days of receiving complete documentation from the clients,” the bank said in a statement.
Dfcu Bank has seen one of the most phenomenal growths by a Ugandan institution. Established in 1964 as a development finance institution, it has over the years been associated with many success stories in Uganda’s economy in various sectors including agribusiness, communication, education, health, manufacturing, tourism, real estate, mining, construction, transport, trade and commerce, among others.
In 1999, the company bought Uganda Leasing Company, renaming it Dfcu Leasing. In 2000, it bought Gold Trust Bank, renaming it Dfcu Bank, and started commercial banking. Dfcu Limited was listed on the Uganda Securities Exchange in 2004. In 2014, Dfcu Bank acquired loans and deposits of Global Trust Bank. In 2017, it acquired some of assets and liabilities of Crane Bank.