Merchant Finance Pte Ltd has recently made headlines with its decision to introduce innovative land and land subdivision lending products, aimed at addressing the growing housing and land supply shortages in Fiji. According to CEO Veilawa Rereiwasaliwa, this move follows the establishment of Vanua Finance last July and is particularly commercially attractive due to the high demand for land subdivision among iTaukei landowners, who own the majority of land in the country.
Rereiwasaliwa explained that the initiative not only aims to assist individual landowners but also aspires to mitigate the housing shortage by making more lots available for purchase. The introduction of a dedicated land subdivision product is expected to simplify the process of obtaining financing for land development, which has been complicated by the absence of clear options from commercial banks.
Highlighting government support, Rereiwasaliwa noted a $10 million fund available for iTaukei landowners interested in land subdivision projects. With an initial loan portfolio of $16 million already approved for seven customers, Merchant Finance has set ambitious goals, looking to finance the development of approximately 2,000 lots in the next three years.
This support from Merchant Finance not only helps landowners enhance the value of their properties but also contributes to broader community development by generating job opportunities across various sectors, including engineering and construction. The positive feedback from landowners regarding the loan products indicates a burgeoning optimism about the financial opportunities now available, facilitating their ability to consult and access necessary financing.
The market-relevant initiative is in alignment with previous efforts by Merchant Finance, including the launch of other financing products like the Land Loan, which supports families living on unregistered land. By providing comprehensive solutions that lower the barriers to land ownership, the organization is fostering economic stability and empowerment, particularly within indigenous communities.
Ultimately, the introduction of these financial products signals hope and progress, reinforcing Merchant Finance’s commitment to enhancing the quality of life for many Fijians while contributing to the overall economic growth of the nation.
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