Entities applying for an NHFC loan facility must meet the required Qualifying Criteria and provide relevant supporting documents as prescribed by the NHFC Credit Committee.

  BRIDGING LOAN [Short to Medium Term Facility]

Loan description:

  • Loans to unblock construction of private housing, to broaden scale of impact and to penetrate new markets. Minimum size of the development is 100 units.

Target market:

  • Developers

Loan size

  • Depends on the peak cash-flow requirements of the project. There is no upper limit; however, the peak cash-flow requirement must, preferably, be more than R10million.
  • Depending on the on projected cash-flows, size of the project, realistic projections, capacity to manage project, potential market, etc.; the loan facility will be limited to approximately 30 up to 50% total borrowings costs as equity.

Loan Term

  • Up to 3year / 36month term period
    • Capital and interest repayment moratorium period: up to 12 months (depends on the projected length of time to complete the phase of the project) which comes into effect immediately on the disbursement of the first tranche of the loan.

Qualifying criteria and finance conditions:

  • Borrowing entity:
    • Preferably the borrowing entity must be a registered legal entity companies i.e. Pty Ltd or an Ltd company with property development expertise. Close Corporations will not be considered.
  • End users:
    • At least 30% of beneficiaries serviced by the project must be households with up to R15 000 monthly incomes.
  • Property Tenure Types (Product):
    • Greenfield-type projects, which are fully integrated by nature and are pre-approved by major banks major banks for end user finance.
  • Repayment of the loan:
    • Moratorium is granted on both capital and interest from the date of disbursement
    • During the remaining term after the moratorium period of the loan capital and interest will be repayable in arrears in monthly installments
    • The Borrower may repay the whole or part of the principal facility, if, no less than 90 (ninety) days prior written, notice is given to the NHFC
    • The loan is a vanilla amortising loan (over the balance of the loan term)
  • Pricing:
    • linked to Prime Lending rate; also determined by the defined overall risk assessment on the borrower’s track and credit records and the merits of the development
    • 1 to 3% of the total facility, payable as once off facility/administration fee at first drawdown
  • Granting Terms / Disbursements:
    • linked to successful delivery of approved project milestones and progress reports


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