Merchant Finance Limited (MFL) has recently unveiled two new financing products aimed at assisting both existing and new landowners in Fiji. The Land Loan and Land Subdivision Loan are designed to promote affordable land ownership and enhance living conditions among Fijians.
According to MFL’s Chief Executive Officer, Veilawa Rereiwasaliwa, these new offerings expand upon their previous products including the zero deposit home loan and the MSME product. The Land Loan specifically targets families residing in informal settlements who wish to secure registered leases or freehold land, addressing a significant challenge faced by approximately 84,000 families currently living on unregistered land.
The new Land Loan provides up to 90% financing, a significant increase compared to the 60-80% offered by most lenders, thereby improving accessibility for more potential buyers. It requires a 10% deposit and features an interest rate of 10% on a reducing basis, with loan terms extending up to 10 years.
Meanwhile, the Land Subdivision Loan is a pioneering product in the Fijian market, designed to alleviate housing shortages by financing civil works for property development. This product allows each customer to potentially access a maximum loan of $4.5 million based on the size of their land and the scope of their projects. Additionally, it covers 100% of civil work costs with a unique government subsidy of 3% interest for the first three years, specifically aimed at supporting indigenous landowners.
Rereiwasaliwa emphasized the collaborative mission to boost overall housing supply by empowering landowners to subdivide their parcels of land, which could ultimately enhance their property values and contribute to community development.
This initiative aligns with ongoing efforts to improve financial opportunities for indigenous communities and is seen as a crucial step toward fostering economic upliftment and stability across Fiji. By facilitating greater access to land ownership, these new loan products herald a hopeful outlook, providing families with a tangible pathway to secure their futures and improve their quality of life.
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