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.


Loan description:

  • Incremental Housing (IH) offers Wholesale Structured Loans for Retail Finance Intermediaries to broaden scale of impact and penetrate new markets and/or to on-lend to qualifying low- and middle-income households who want to increase house value by
  • improving their homes,
  • buying land or
  • providing top-up credit for discount benefit or capital subsidy beneficiaries.
  • IH loans range between R8,000 and R15 000

Target market:

  • established and accredited Micro-Finance Lenders Retail Finance Intermediaries (RFI's) and/or Banks

Loan size

  • Loan size minimum R10m, depending on the potential market, realistic projections and capacity to manage growth.
  • Drawdowns to match disbursement of end-user loans

Loan Term

  • Maximum of 5 years.
  • Loan repayment period must match end-user loan profile.
  • Lender to contribute a minimum of 20% capital adequacy of the total facility amount

Qualifying criteria and finance conditions:

  • Intermediary's concept and philosophy in line with the NHFC's funding objectives
  • The intermediary should be a (Pty) Limited
  • Presentation of a detailed Business Plan covering:
    • Background history, mission, objective(s) of the company;
    • Product profile, marketing strategy and loan pricing.
  • Satisfy NHFC that the intermediary is sustainable in the short to long term
  • The intermediary has adequate management systems and policies to be able to originate and manage and collect end user accounts.
  • Granting Terms:
    • All drawdowns to match disbursement of end user loans
    • All loans issued must be for incremental housing purposes
    • The intermediary commits itself to submit monthly management accounts i.e. Income statement, balance sheet, cash flow statement and debtors aging analysis report


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