| dc.description |
This study is about the efficacy of housing financing schemes for the development of housing sector in Tanzania. The study is set to fulfill the following objectives: to identify and assess the opportunities in the effective formal housing financing schemes for LMIHDs and the condition attached to the schemes; to determine patterns of financing housing construction by low and middle income households and the level of their awareness to the schemes of housing financing; to assess the extent of accessibility to the loans issued by financial institutions to the LMIHDs and to identify the challenges for implementing formal housing finance schemes in Tanzania.
The case study approach has been preferred research design since it has enabled this study use multiple sources of data, hence data triangulation has been enhanced by the choice of case study design. In this way the study was enabled to validate data and information from questionnaires, interviews and documentary reviews. In so doing both reliability and validity of data in this research were assured. The main findings of this research has been categorized into three groups; namely the findings on the part of the financial institutions, the government and those in the perspective of the LMIHDs. For the financial institutions, the efficacy of the housing financing schemes is affected by the high interest rates charged by these institutions and stringent conditions attached. Some of the schemes of these financial institutions tend to exclude individuals despite being members, for instance LAPF. The government, on its part, limits the efficacy due to cumbersome procedures for securing a title deed. On the part LMIHDs, the obvious fact is that most of them lacked collateral or were not in the secured employment and they automatically did not qualify for the loans.
The conclusion drawn in this research is that the efficacy of the housing financing schemes generally is under the discretion of the financial institutions themselves since they are the ones who set the conditions on HFS for the LMIHDs to qualify. Also the
government has a significant role in ascertaining that the LMIHDs fulfil such conditions as having the title deeds, building permits and the land is properly planned. |
|