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Cyprus

House Finance Corporation extends loan facilities

The Housing Finance Corporation (HFC) is expanding its low-interest lending activities to household goods, overdrafts, student and medical loans, it announced on Wednesday.

The corporation, which has traditionally issued only housing loans for low-income groups, said it was expanding its role and that a public information campaign would be launched shortly.

In a statement to CNA, HFC director-general Andreas Georgiou said that apart from its existing activities, which include mortgages for housing and land, and renovation loans, a new plan had also been put in place for young couples.

The overdraft facilities it plans to offer would be a first for the HFC, he added.

“With that, we are completing the range of products we promised last year,” said Georgiou, adding that HFC credit cards might also be in the offing by the end of the year, or by early 2019.

The interest rate on the mortgage scheme for young couples, Georgiou said, would be 1.9 per cent for the first five years, rising to 2.5 per cent thereafter.

The student loan would be 1.7 per cent for the first five years, going up to 2.7 per cent, healthcare between 3 per cent and 3.5 per cent and for household goods, 3.3 per cent to 3.5 per cent. The overdraft rate will be 3.7 per cent to 3.9 per cent depending on whether someone has their salary paid into the HFC.

With a wage remittance an account-holder could have their overdraft fixed at €15,000 while for other account holders the overdraft ceiling would be set at €4,000.

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