Debt To Income Ratio

• The Debt to Income (DTI) ratio of a borrower, who is applying for the grant of credit facilities for the purchase/construction of residential property, shall not exceed 50% of the borrower’s monthly income.

Applicant needs to bring quotation for full value of the home loan project.The maximum amount of loan to be disbursed, subject to eligibility, will be as follows:

For a single borrower, or husband and wife in case of a joint application, for the purchase/construction of a first residential property, the maximum loan amount should not exceed:-

• Rs15m for civil servants and Rs10m for non-civil servants – a maximum Loan to Value (LTV) ratio of 100% of value of the residential property

• For the purchase/construction of a residential property, in case of joint applications (other than husband and wife), the maximum loan amount should not exceed 70 per cent of the value of the property.

Notes:-

• The loan will not be disbursed until the borrower has shown that the difference between the cost of the project and the loan extended, is readily available in his/her savings account.
• The borrower must declare that this difference has not been borrowed from any financial institution, including those financial institutions not regulated by the Bank of Mauritius.
• Application should be submitted by loanee in person.

Maximum Repayment Period

• For all purposes: up to 35 years subject to maximum age of 65 years.

Moratorium Period (optional)

• 5 years on capital payment; however, interest is payable over these two years.

Security to be offered

The following securities are acceptable:

• First Rank Fixed Charge on property to be acquired or on property on which construction is projected (with bare ownership at least belonging to the applicant or on which he/she has a ‘droit de surelevation); or
• A ‘Pari-Passu’ fixed charge provided that the total loan amount (i.e. Mutual Aid Home Loan plus other loans secured by the same property) does not exceed 70% of the value of the property offered as security; or
• A land on which the applicant has acquired a ‘droit de surélévation’ from his parents, brothers or sisters and witnessed by a duly registered notarial deed; or
• In the case of leasehold, permission/clearance from Government of Mauritius/Rodrigues Regional Assembly.

Interest Rate (subject to Mutual Aid Base Rate (MBR) / Repo rate change)

• Floating interest rate as per hereunder:

• Any review of interest rate will be applied prospectively and will not affect loan already granted unless there is a change in Repo or Mutual Aid Base Rate.

In case where renovation is mentioned in the application form and it is subsequently found that the loan has not been used for renovation, the Association reserves the right to review the interest rate and align on that applicable for Personal Loan.

75 % of valuation cost is paid at time of application based on value of property submitted. Other costs like inspection and registration to be deducted from disbursement amount.   In case an applicant is offering two different properties as security for a loan and two valuations have to be done, the applicant should bear both valuation costs.

The following documents are required:

1. A. Construction of house, please click here for more information
2. B. Extension of existing house/renovation, please click here for more information
3. C. Purchase of flat, please click here for more information
4. D. Purchase of house, please click here for more information
5. E. Purchase of residential land, please click here for more information

1. Loan Coverage Fee (LCF)

Two Options are provided to the applicant;

• 5% of loan amount as contribution to the Mutual Aid Solidarity Contribution (to cover death of applicant only) - Internal.
• Furthermore, client may contract external insurance to cover fire and natural calamities. However, this is optional and does not apply for purchase of land only.

2. Contribution to the Retirement Savings Scheme (compulsory)

• Applicants will be required to join the RSS and contribute as follows:

• The accumulated RSS contribution will not be refunded until the home loan has been fully settled.

• All loan agreements should be registered prior to disbursement.
• Eligibility will be computed based on basic salary plus salary compensation, travelling allowances and permanent allowances at approved rate.
• Other Terms and Conditions may apply subject to change in regulations / policies.

• The applicant is strongly advised not to sign any agreement (re-construction or purchase of the land / property) before his/her application is considered by MCSMAA and a loan offer is made to him/her by MCSMAA.

• The applicant for a loan of Rs 4 million and above should not have a past history of defaults / arrears in loans (Mutual Aid and other institutions).
• In case of renovation, there should be a net of at least Rs200, 000 after offset other loans with other financial institution (Mutual Aid Loan offset is not allowed).

• The applicant should submit the relevant documents concerning the renovation and including photos of the house to be renovated along with the application.

• Once the renovation has been completed, an inspection would be held by an officer of Mutual Aid to ascertain that the loan proceeds have been used for that purpose.

• Shareholders are informed that it is mandatory for the Association to make necessary enquiry from the Mauritius Credit Information Bureau (MCIB) before approving, increasing or renewing any loan facilities and to provide the MCIB with relevant information regarding the present loan.
• According to Section 52A of the Bank of Mauritius Act, it is mandatory that the ‘Know Your Customer’ (KYC) records of our members be submitted to the KYC Registry of the Bank of Mauritius.

• When a loan renewal is granted to a member, the first EMI of the loan renewal will be deducted after two months. Consequently, the two instalments of the previous loan will be deducted from the capital balance of the new loan. For example, if the new loan is granted in March, the first EMI will be demandable in May.  However, the EMI for March and April receivable for the previous loan will be deducted from the capital balance of the new loan.

• A loan contract is valid when the proceeds of the loan have been credited to the account of the Applicant who is alive.

• The Association reserves the right to reject a loan application after assessing the risk profile of the Applicant and Security provided.  It can also keep in abeyance the loan application of an applicant who is in litigation with the Association until the final outcome of the case. 

• There should not be any overwriting or use of correction fluid on the application form. However in case of overwriting there must be signature. All photocopies must be clear; all signatures affixed must be identical to that on the National Identity Card of bearer.

Maximum of Project Value (subject to eligibility) as follows:

• For Purchase of Land / House / Flat subject to Valuation Certificate.
• For Land Purchase with intention to construct a house:(*)
  • 50 % for acquisition of land and remaining amount in two stages:
  • 20 % at start of construction and
  • 30 % upon reaching beam stage.
• For House Construction (for loan amount disbursement): in 3 stages: (*)
  • 25% on completion of document;
  • 40% of reaching beam level and
  • 35% after casting of slab(s).
• For land/house/flat purchase, cheque will be drawn in the name of the seller or a Notary.

*(Subject to inspection)

• Home Loan Application Form

• Home Loan Information Sheet