President Jacob Zuma’s age might not have qualified him for a home loan in one of the country’s big commercial banks.
The Nedbank Group this week said the cut-off age for clients to qualify for home loans is 70 years.
Zuma turned 74 in April.
“Our standard mortgage lending policy requires that a home loan should be repaid by the time the applicant is 70 years old. For example, the maximum term for a 55-year-old is 15 years, and a person who is 60 years will be given 10 years to pay back the home loan.”
Lending outside of these parameters is done on an exceptional basis only, having regard to the particular circumstances of the applicant.
Nedbank’s comment came after National Treasury disclosed that Zuma had settled the R7.8-million bill for non-security upgrades at his homestead in Nkandla.
Zuma’s office said the Venda Building Society Mutual Bank, in which the Public Investment Corporation is a shareholder, approved the home loan. The PIC invests public servants’ pension funds.
ABSA said: “In addition to the applicant’s credit profile, we also consider their ability to service the loan over the repayment period.