afrol News, 10 December - The Housing Finance Company (HFC) says it will apply adjuted interest rates from January 2009, especially for housing loans.

The normal housing loans, for amounts not exceeding rupee 350,000 (rand 220,000), will now charge 13 percent interest, up from the current average of 7 percent, the organisation's chief executive Charles Bastienne told the 'Nation' daily newspaper.

"Interest for second housing loans of up to rupee 175,000, with which children build on their parents' property, will also be charged 13 percent instead of the present 7 percent," Mr Bastienne said, adding that "commercial loans", in which Seychellois borrow between rupee 351,000 and 500,000 to build their houses would now be charged at the rate of 16 percent, up from the present 10 percent.

The Housing Finance Company blamed the soaring interest rates on commercial banks, who were themselves now charging higher interest rates.

The shocking news was presented today by the Seychellois press, but consumers have already reacted to the soaring interest rate. Mr A Payet from Seychelles told afrol News this "arousing news" was sure to "bring disaster to many families and become a brake on growth" on the archipelago.

By staff writer

© afrol News

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