Merchant Finance Limited (MFL) has announced the launch of two new financing products designed to support both existing and prospective landowners in Fiji. The Land Loan and Land Subdivision Loan aim to make land ownership more accessible and improve living conditions for Fijians.
Veilawa Rereiwasaliwa, MFL’s Chief Executive Officer, highlighted that these new offerings build on previous products such as the zero deposit home loan and MSME financing. The Land Loan specifically targets families in informal settlements who want to obtain registered leases or freehold land, addressing the needs of approximately 84,000 families currently living on unregistered land.
The Land Loan offers up to 90% financing, significantly higher than the 60-80% commonly available from other lenders. This product requires a 10% deposit, features a competitive interest rate of 10% on a reducing basis, and offers loan terms of up to 10 years, improving accessibility for potential buyers.
The Land Subdivision Loan is a trailblazer in the Fijian market, aimed at addressing housing shortages by financing civil works for property development. Customers can access loans up to $4.5 million depending on the size of their land and project scope. Notably, this product covers 100% of civil work costs and incorporates a government subsidy that provides a 3% interest rate for the first three years, specifically benefiting indigenous landowners.
Rereiwasaliwa emphasized the collective goal of increasing housing supply by empowering landowners to subdivide their land, which not only enhances property values but also contributes to community development.
These initiatives align with broader efforts to enhance financial opportunities for indigenous communities, marking a significant move toward economic upliftment and stability throughout Fiji. By increasing access to land ownership, these new loan products promise a brighter future, offering families a pathway to secure their futures and elevate their quality of life, thereby fostering a strong sense of community and growth within the region.
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