BSB pumps P200 million into teacher’s property scheme
Botswana Savings Bank (BSB) has cemented its rosy relationship with Botswana Primary Teachers Union (BOPRITU), signing a Memorandum of Agreement in an effort to help teachers buy property, especially houses.
Done in collaboration with Incore Property Development Company, the initiative falls under BSB’s Homeline Property Loan package.
Effective from October, the deal runs until 2026, with the state-owned enterprise committing P200 million to the cause for the current financial year alone.
According to BSB Chief Executive Officer (CEO), Nixon Marumoloa, the scheme is an indication of the bank’s determination to provide innovative financial solutions to its customers.
“Our commitment as a bank is also deepening collaboration with strategic partners hence the reason we have this kind of agreement with BOPRITU. This means multi million Pula investment for homes for Batswana who are BOPRITU members, which means in six months time members can have fresh assets worth of P200 million. What better investment is there for Motswana than a home?” Marumoloa pointed out.
The package includes homeline property loan solutions for the union’s members, supported by services from Incore. The process will see members engage the property development company, as the first step to identify property in preperation for funding.
The member will then enter an agreement with Incore, which will be used to form part of the funding deal with BSB. Upon receiving the loan application, the bank will carry out the normal process guided by BSB internal credit assessment criteria.
“Members will be assisted by property experts with a set of skills and knowledge, that allows an individual to make informed and effective decisions. This tripartite will bring value and is an effort to standardize and expedite property development process for members. The collaboration does not simply mean cooperation between entities; it is more than just involvement. Amongst it’s attributes, where there is collaboration there is accountability and joint responsibility for every partner to play their role diligently, ” explained Marumoloa.
BSB and BOPRITU’s relationship dates back to 2019 when the bank signed an agreement with the teachers’ union to offer loans at reduced rates. The rates have been reviewed recently and new changes communicated to BOPRITU, which include giving personal loans on a seven-to-ten year tenure.
Reflecting on their proud history, BOPRITU President, Othusitse Molebatsi said, “We come a long way with BSB since our relationship will be turning four years. I’m glad that land is available and teachers have the capability to utilise and exhaust this scheme. Normally our members tend to get property at the end of their careers but with this agreement things will change as they will reap the benefits of this one.”