Housing Finance Bank (HFB) has explained how Ugandans can have financial breakthrough under its ‘Make 2023 Your Year in 48 Hours campaign’.
In webinar convened on Tuesday, the bank’s officials including Dorothy Namutebi (Manager, Work Place Banking) Hellen Musubika (Head of Diaspora and High Net Worth Customers) and John Baptist Kaweesi (Head of Mortgages and Consumer Banking) , the bank emphasized the need for salaried workers to plan ahead of retirement, manage risk, manage debt, leverage on mortgage and most importantly achieve financial independence.
Currently, the lender is offering up to unsecured Shs350 million salary loans. This comes with a competitive rate of 17% and zero fees. This is processed within 48 hours, with key requirements being a salary account with the Bank, an identity card, a loan application and an employment contract or an appointment letter.
Riding on this background, Namutebi noted that with the Bank’s offer, a salaried worker is able to create multiple sources of income using the easy and affordable financing from the bank. Namutebi emphasized that planning for retirement should be in phases, arguing that the first half (ages 25 to 45) is critical.
“Let the salary loan give you a start. Today it may seem like a loan but seven or ten years from now, it will be collateral,” Namutebi said, adding that once a loan is acquired, it can go towards acquiring titled property (land or house), buy equipment, government securities, investing in fixed deposits or buy a vehicle.
Namutebi adds that the loan can also go into consolidating debt. She explains that having a number of debts in different areas can be stressing. Therefore, she suggests that one gets a loan and clears all the debts and remains with only one at Housing Finance Bank.
“Get a loan and consolidate your debt. Our swift salary loan is the answer. For example, with Shs100 million borrowed from us at 17.5% for 5 years, you will have knocked off your debts and maybe still have a balance to feed your family,” she said.
According to Namutebi, there is a need to plan ahead of retirement by identifying risk free investments. These, she says include government securities, long term fixed deposits and short term deposits among others, as opposed to running after tenants while in retirement.
“Money will come to you when you are in bed,” Namutebi says, noting that financial independence come with managing unforeseen risks. Namutebi advises that clients insure property, education and health among others.
“Start today. Create your medical cover today and you will not break your retirement money in future,” Namutebi says.
Importantly, Namutebi advises on the need to manage banking costs.
“The HFB loan is affordable and convenient. Make your banking cost friendly. You just need a pay slip and get the money in 48 hours. If you lost that job today, you probably won’t get that money. Today you are sitting on Shs15 million salary. This should be able to jump start you to financial independence/freedom,” she says.
The Bank’s ‘Make 2023 Your Year In 48 Hours campaign’ is running for the next 3 months.
