Merchant Finance Ltd (MFL) has announced the launch of a new land subdivision loan product, with an initial portfolio of $16 million designated for seven approved customers. The product was introduced in Suva last Friday and aims to assist both existing and prospective landowners in Fiji, demonstrating MFL’s commitment to empowering iTaukei business and investment initiatives through its Vanua Finance loans facility.
MFL’s Chief Executive Officer, Veilawa Rereiwasaliwa, noted that two of the seven customers have completed their land subdivisions, while the remaining five projects are underway. Furthermore, the firm is actively processing loan applications for an additional ten land subdivision ventures, valued at $20 million collectively. This initiative is poised to contribute significantly to addressing Fiji’s housing shortage.
Mr. Rereiwasaliwa highlighted the broader economic impact of this loan product, stating that increased demand for land subdivision development is expected to create job opportunities for engineers, laborers, and other service providers, thereby stimulating economic activity within the region.
Key features of MFL’s land subdivision loan product include 100 percent financing for civil works—covering infrastructure development—and a government-subsidized fixed interest rate for the first three years. This innovative offering sets a target for MFL to finance up to 2,000 lots over the next three years, which would enhance the supply of land and housing solutions in Fiji.
Additionally, MFL has also introduced a land loan product that requires only a 10 percent deposit, offering an interest rate of 10 percent on a reducing balance and loan terms of up to 10 years. This feature complements the organization’s objective of improving access to land ownership for families currently living in informal settlements.
This new financing initiative represents a hopeful and positive step towards addressing the housing needs of Fijians and reflects an ongoing commitment to enhancing financial opportunities for indigenous communities. The introduction of these innovative loan products not only aims to alleviate current housing shortages but also promotes community development and fosters a brighter economic future across Fiji.
Leave a comment