This is a housing development or house purchase loan available to a group of individuals represented by their employee/Company or their Company’s Cooperative Society.

The various options are available:

• The Company/Cooperative Society may advance the cost of purchase or construction of the house while DML will manage the construction and administer recovery of the loans and pass over to the company.
• DML will advance the mortgage loan to the group of workers on the guarantee of the Company/Cooperative Society.
• The Company/Cooperative Society will deposit a lump sum e.g. 30% equity contribution for the group while DML finances the balance.
• DML will loan the construction/purchase cost to the company at commercial rate and charge administration fees for the construction and management.
• DML will approve a global limit in the name of the Company/Co-operative and grant individual loans to benefiting members on agreed terms between DML and the Company/Co-operative or as instructed by the Company/Co-operative
• The Company/Co-operative will deposit an amount equal to a % of its members housing allowance on an annual/quarterly or monthly basis and DML will advance loan facilities to the specific qualified members for the property to be purchased, renovated, built, expanded, etc
• The Company/Co-operative will deposit an amount equal to a % of its members emoluments/entitlements and DML will advance loans to its benefiting members to satisfy their housing needs

What to do:

• For options ii and iii the company will also make a lump sum deposit at a negotiated interest rate and this will act as a guarantee against default in repayment by loan beneficiaries.
• In line with ii and iii the company/cooperative society will undertake to recover any outstanding balance of the loan from the separation benefit of the beneficiaries upon exit from the company.
• The company will also undertake to make monthly deductions from the salary of the loan beneficiaries and pass same to DML monthly.
• For options ii, v, vi and vii the list of benefiting/qualified members will be given to DML
• Benefiting members will open individual loan accounts upon the approval of the facility
• The Company/Co-operative will screen the applications of benefiting members before sending to DML
• A Letter of Undertaking/Indemnity from the Company/Co-operative to pay the members outstanding balance in case of any default (By this DML can accept a village property as collateral. This requirement will be included in the Memorandum of Understanding between the parties) 

Features

• Ten years tenor or less
• Flexible means of repayment: monthly, quarterly or lump sum payment of principal and interest.
• Payment can be made in cash, cheque, direct debit/standing order from any bank or direct deduction from employees salary.
• Monthly repayment not exceeding one-third of customer’s salary for options i to iv
• The collateral is the land for which the facility is sought
• Guarantee of the Company or Cooperative Society.
• Tripartite agreement authorizing direct monthly debits to the employee’s salary.
• No contribution from benefiting members under options vi and vii
• Also DML will remit monthly interest on the Fixed deposit to the Company or Co-operative
• Letter of Undertaking/Indemnity from Company or Co-operative Society
• Company or Co-operative makes direct repayment on a monthly basis on behalf of its members or
• Each benefiting member issues post dated cheques for an initial 24 months
• The total amount of loan advanced to each beneficiary will not exceed an agreed amount, e.g. % of Annual Housing/emolument/entitlement or a stated amount
• The total amount granted will not exceed a % of the deposit with DML
• For options vi and vii the deposit will attract fixed deposit interest rate for the duration of the facility
• The interest rate charged under options vi and vii will be a negotiated spread above the fixed deposit rate. (Therefore the lower the fixed deposit rate the lower the interest rate charged)
  

Benefits:

•   Ten years tenor or less
• Flexible means of repayment: monthly, quarterly or lump sum payment of principal and interest.
• Payment can be made in cash, cheque, direct debit/standing order from any bank or direct deduction from employees salary
• No contribution from benefiting members under options vi and vii
• For options vi and vii the deposit will attract fixed deposit interest rate for the duration of the facility
• The interest rate charged under options vi and vii will be a negotiated spread above the fixed deposit rate. (Therefore the lower the fixed deposit rate the lower the interest rate charged)