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The leading banks usually offer various types of loans. We will help you choose
the one that best suits your needs and help you through the application process.
The following are brief descriptions of the various types of loans available.
ORDINARY LOANS
A loan granted to an applicant who uses the proceeds of a loan to purchase
/acquire immovable property on which there are existing buildings and other
fixtures or which is vacant land.
ORDINARY LOANS: FURTHER ADVANCE
Where the owner of fixed property that is already bonded as security for an
existing loan requires further finance, the bank will grant a further advance
subject to the value of the bonded property being adequate security for the
increased loan amount. The client is normally allowed to use the amount of the
further advance extended according to his own discretion.
BUILDING LOANS
A loan granted to an applicant to erect a building on a vacant stand (client
applies for a full building package).
The loan is granted subject to a mortgage bond being registered in favour of the
bank. After registration of the bond, the bank will advance monies to the client
or his contractor as the building work is progressed (payment of funds is based
on progress, e.g. land, foundations, roof height and finishes)
BUILDING LOANS: FURTHER ADVANCE
Where the owner of the fixed property that is already bonded as security for an
existing loan requires finance to erect buildings, effect alterations,
improvements or additions to the buildings already established on the immovable
property. If the future value of the property when complete is adequate, the
bank will be able to grant the further advance. The bank may advance the full
amount immediately (depending on the security available against the mortgage
bond), advance the amount as progress is made with the building operations, or
may retain a portion subject to certain suspensive conditions. Where the margin
between the loan account balance and the mortgage bond allows for such an
advance to be made, the bank may do so. If the margin is insufficient, an
additional mortgage bond will have to be registered.
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