Merchant Finance Ltd (MFL) has unveiled a new land subdivision loan product, allocating an initial $16 million to support seven approved clients in Fiji. Launched in Suva last Friday, this initiative seeks to aid both current and potential landowners, exemplifying MFL’s commitment to empowering iTaukei business and investment through its Vanua Finance loans facility.
MFL’s Chief Executive Officer, Veilawa Rereiwasaliwa, reported that two of the recipients have already completed their land subdivisions, with five more projects currently in progress. Additionally, MFL is processing applications for ten more land subdivision projects, which together are valued at $20 million. This development is expected to significantly help mitigate Fiji’s housing crisis.
Mr. Rereiwasaliwa emphasized the economic benefits of this loan offering, mentioning that the increased demand for land subdivision initiatives could lead to the creation of numerous job opportunities for engineers, laborers, and other service providers, thereby boosting regional economic activity.
Notable features of MFL’s land subdivision loan include full financing for civil works, including infrastructure development, alongside a government-subsidized fixed interest rate for the first three years. MFL aims to finance up to 2,000 lots over the next three years, which would directly contribute to enhancing land and housing availability in Fiji.
Moreover, MFL has introduced a separate land loan product that only requires a 10 percent deposit, offering a 10 percent interest rate on a reducing balance and loan terms of up to a decade. This initiative is tailored to enhance access to land ownership for families residing in informal settlements.
This financing initiative is a positive stride in addressing the housing challenges faced by Fijians. It highlights MFL’s ongoing commitment to improving financial opportunities for indigenous communities and indicates a path towards community development and a brighter economic outlook across Fiji.
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