PROPOSAL FOR SETTING UP A HOME OWNERSHIP SCHEME
A home ownership Scheme is a Scheme set up to assist the members of an organization, by granting loans to them to enable them own their personal houses.
The Scheme is a welfare package for the benefit of staff, as an additional incentive to boost staff morale and ensure dedication and commitment to the organization.
Most public service establishments provide for housing loans for their staff through such home ownership schemes. The following establishments have set up schemes for their staff:
* Nigeria Deposit Insurance Corporation
* Bureau of Public Enterprises
* Central Bank of Nigeria
* Raw Material Development Council
A home ownership Scheme may be set up under two types of arrangements namely:
* Self Funding Arrangement.
* Mortgage Bank Funded Arrangement
* Commercial bank Funded Arrangement.
A. SELF FUNDED SCHEME
A self funded Scheme is one where the organization sets aside a bulk sum of money to Fund the Scheme at its inception. This sum is placed under management with a Fund Manager and creates a pool of funds from which loans would be granted, on a revolving basis to staff, as they qualify for the facility.
The Fund will be managed by a Fund Manager who would have the responsibility of investing and growing the funds under management. The funds will be invested in gilt edged securities such as treasury bills to ensure the safety of the funds at all times. The principal fund along with the accrued return on investments would form the pool of funds from which the loans would be disbursed to staff who qualify for the facility.
General Conditions Applicable to the Scheme
* Eligibility: To be eligible for a loan under the Scheme, the staff must be a confirmed staff of the organization and must have spent a minimum of five years. The period may however be shortened or increased depending on the preference of the organization.
* Entitlement: The staff would be entitled to between 500%...