Bank of Baroda approved as mortgage finance company

-Minister Singh urges bank to expand its services here

Potential homeowners have been given another option of affordable housing financing, with the Bank of Baroda coming on board, as a new mortgage finance company.

The bank is offering loans at very low interest rates that will benefit potential homeowners, especially those in the low-income bracket.

Persons borrowing up to $6 million will pay four per cent interest. Those borrowing between $6 and $12 million will pay 5.95 per cent interest, while loans ranging from $12 million to $15 million will accrue 6.25 per cent interest.

The agreement between the Guyana Government and the Bank was inked by Senior Minister in the Office of the President with responsibility for Finance, Hon. Dr. Ashni Singh and the Bank’s Managing Director, Mr. Arun Kumar Gupta. The signing was done at a simple ceremony held at the Arthur Chung Conference Centre.

Dr. Singh said Guyana’s imminent wealth is opening avenues for economic development and all financial institutions must position themselves to benefit.  

“We would like to see Bank of Baroda and other institutions like Bank of Baroda expand your operations in Guyana and position yourselves to take advantage of the remarkable growth prospects of Guyana. Not only are you providing an excellent service to your customers, but there is a remarkable opportunity for growth for the bank,” he said.

Minister Singh said a new Guyana is on the horizon.

“The roads that will be constructed will be vast new communities. The homes that will be built by loans from Bank of Baroda will form new communities. Families will discover new lives and enjoy new comfort and independence when enter their own homes,” he added.

Meanwhile, the bank’s Managing Director said the agreement is an economic partnership that would benefit the People of Guyana.

“The Government of Guyana, in order to support the development of the housing sector, is forgoing its tax income. It is basically a sacrifice by the Government of Guyana to help the common Guyanese people to own better house, their mortgage capacity increased so that they can buy a house. They can construct better housing accommodation for themselves and their families,” Mr. Gupta said.

Minister of Housing and Water Hon. Collin Croal has applauded the initiative, which he said demonstrates confidence in the economy and represents the Government’s commitment to deliver improved services to citizens.

He said too that the services of the Bank of Baroda will be a great benefit to potential homeowners.

“They will now have an additional institution that they can approach for their borrowing. The introduction of the Bank of Baroda in this sphere of lending, shows that the increase interest in the housing sector is a testament to the policies and programmes of our Government, being driven by the Ministry of Housing and Water, of course.”

Minister Croal said the Government will uphold its commitment to the people to deliver at least 10,000 house lots each year, totalling 50,000 in five years’ time.

Although it operates only two branches in Guyana, the Indian Government-owned banking and financial services company is the third largest public sector bank in India, with 131 million customers. It has established branches in 25 countries across five continents.

Today’s event was the third engagement over the last week between the Ministries of Finance and Housing and Water. Last Wednesday, the Finance Ministry hosted the Handing-over Ceremony for the Increase in the New Building Society Limited’s loan ceiling. On Tuesday, it signed $13.9 billion for 199 contracts by the Housing Ministry for infrastructural development of new housing schemes across Guyana.

Minister within the Ministry of Housing and Water, Hon Susan Rodrigues and Indian High Commissioner to Guyana, His Excellency, Dr. K.J Srinivasa also attended the ceremony.