Lending rates for standard housing loan reduced

BSP has reduced lending rates for its Standard Housing Loan Product and its Unsecured Personal Loan Product.

The new rates are 6.5 percent pa and 27 percent pa respectively, and came into effect on 6th May, 2019.

In announcing the reduction, BSP Group General Manager Retail Paul Thornton said the new Standard Housing Loan interest rate of 6.5 percent pa represented a 0.95 percent reduction from the previous rate and is applicable to existing and new borrowers.

“BSP believes that home ownership is an important aspect of the economic development of a country and we are proud to offer owner-occupied housing finance to our customers at the lowest rates available in the PNG market,” he said.

“Together with BSP’s First Home Ownership Loan, the Standard Housing Loan is enabling many Papua New Guineans to enter the housing market and this is a catalyst for them accumulating personal wealth by acquiring a lifelong asset.”

The BSP Standard Housing Loan and the First Home Ownership Loan have a notational repayment term of 40 years with the First Home Ownership Loan having an interest rate of 4 percent pa.

The reduction in the BSP Unsecured Personal Loan to 27 percent pa from the previous 29.9 percent pa applies to all new loans approved from 6th May, 2019. 

Thornton said BSP’s Unsecured Personal Loan offer continues to come with Consumer Credit Cover that provides a funeral benefit of K5,000 payable to the Borrower’s nominated administrator and the clearance of any outstanding loan balance in the event of the borrower’s death, during the term of the loan.

Terms and conditions do apply. This Consumer Credit Cover comes at no additional cost to the borrower.

BSP’s Unsecured Personal Loan is available to eligible applicants for amounts up to K50,000 and for a maximum term of 5 years.

(Group General Manager – Retail, Paul Thornton)

Press release