LCW Introduces Brick Purchase Scheme

| May 25, 2015

Lobatse Clay Works (LCW) has introduced a scheme which will make it easier for people to build their houses cheaper.

Speaking at the brick purchase scheme launch, former employee of (LCW), who is now the director of Norton Vale Holdings, Ms Keamogetse Phefo said the brick purchase scheme was introduced after the realisation that the individual market was ignored.

She said they decided to come up with the brick purchase scheme to help people build houses, which would minimise mortgage costs.

On the benefits of the scheme, Ms Phefo said it would be easy for individuals to access bricks to carry on their projects. She also said that would enable people to have an easy plan when carrying out their projects.

“You can budget this from you salary, no need to go to a financier,” she said. Ms Phefo stated that through the scheme, one could build a house of 20 000 bricks at less cost.

She said the scheme had a short term payment plan of a maximum of 24 months. She further noted that an individual could choose to pay in six, 12, 18 or 24 months.

“The longer you stay in paying for money and goods the more you spend on interest,” she stressed.

She said LCW wants to encourage people to cultivate the culture of home ownership, adding that Batswana should stop renting houses. She noted that half of the amount used for rental in a period of three to five years could be used to purchase bricks from LCW through the scheme.

Presenting on how the brick purchase scheme works, Ms Phefo said there was pre-paid and lay-buy where an individual could decide to pay in aance.

She said the potential home owner should know the estimated number of bricks needed for the house of their choice.

She also noted that people could use the direct payment method from unions, government institutions or organisations, adding that an individual could extend a loan at a cheaper rate and pay LCW directly as an organisation.

“In that way there is no interest charged by the company to your employee,” she said. Ms Phefo said the third scheme was the high purchase scheme which came in two forms.

She said with the high purchase scheme there was a need for an assessment of an individual’s financial background.

Furthermore a guarantee letter from an employer and approval of employment contract is essential for the scheme. She said the guarantee letter was a commitment from the employer that money would be deducted directly from the customer’s salary at the end of the month and forward to LCW.

She stated that once an individual had a guarantee letter then no security was needed. However, she said in case there was no guarantee letter, some form of security would be needed, which was the plot where the construction was supposed to take place. She noted that the high purchase would earn some interest in the account.

Source : BOPA

Source : Botswana Daily News

Category: General

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