Banque de l’Habitat S.A.L. grants you a long-term loan in Lebanese Pound to purchase or to renovate a housing unit. In addition to that, the Bank offers a new short-term loan for renewable energy electrification called Solar Energy Loan.

Terms and Conditions of the Renovation Loan:

1- The Borrower must hold the Lebanese citizenship for at least 10 years and enjoy his/her right to legal capacity.

2- The Borrower must not be convicted of criminal charges and should have a clean judicial record.

3- The Borrower must have a clear credit history and should not have been blacklisted for the past 10 years.

4- The Borrower must be of a required age to work and be productive during the entirety of the loan repayment period, whether he/she is a resident in Lebanon or an expatriate (for employees till the age of 64, and for free professionals and self-employed till the age of 70 provided that the loan tenor is no less than 7 years).

5- The housing unit, subject of the loan should be exclusively allocated to family housing. The breach of this obligation will result in the termination of the contract and will oblige the borrower to reimburse the principal loan amount with all its interests and additional charges.

6- The Borrower must be the owner of no less than 1,800 shares of the housing unit, subject of renovation.

7- The Borrower must not have previously benefited from a subsidized housing loan from any bank or other financial institution in Lebanon.

8- The Borrower cannot submit a loan application for the purpose of repaying a previous debt or arrears.

9- Married couples, their dependent children and family members who fall upon the couple’s responsibility are considered as one in everything related to these conditions.

10- On the contract signing date, the borrower signs to the profit of the bank, a Life Insurance Policy paid monthly in cash in Lebanese Pound, as well as a Home Insurance Policy, paid yearly in cash in “Fresh” USD, covering fire risks, allied perils and the third party liability.

Those two policies are exclusively issued by a group of insurance companies accredited by the bank.

Who is eligible to benefit from a Renovation Loan?

Residents and Expats, under the following conditions:

1- For Resident applicants, the household net monthly income must not be less than 6,000,000 LBP and should not exceed the amount of 20,000,000 LBP.

As for the Expatriate applicants, the household net monthly income should not be less than the equivalent of 1,000 USD “Fresh” and should not exceed 2,000 USD “Fresh”.

 2- Applicants should be in the labor market for at least three years prior to the date of submitting the application, should have regular income based on an official employment certificate, and regular bank statements for a period that is no less than three consecutive years or any other proof of income.

3- All the applicant’s financial obligations and liabilities whether listed in the Centrale des Risques Information record or not, will be taken into consideration to determine the monthly net income, when calculating the loan amount. In addition to that, the average cost of basic living expenses, transportation, fuel/diesel expenses, school and/or university tuitions and the housing rental charges (if the concerned applicant is a non-resident), will also be taken into consideration.

The total monthly obligations should not exceed 45% of the household monthly net income, and the monthly loan installments cannot exceed 33% of the borrower or borrowers’ monthly net income.

RENOVATION Loan Characteristics:

- Loan Amount: 400,000,000 LBP.

- Loan Tenor: Up to 10 years and it cannot be less than 7 years.

The Borrower is not entitled to make a total or partial early settlement of his/her Purchase Loan before 7 years as of the contract signing date, unless the Bank agrees otherwise. After this period has elapsed, the Borrower can prepay any part of his outstanding balance; in this case a penalty fee will be levied on every prepaid amount.

- Grace period: up to 12 months as of the contract signing date.

- Interest Rate: 4,99% * per annum, subject to amendment.

- Mode of Payment: Cash in Lebanese Pound only.

- Loan Disbursement: The amount will be released directly to the Borrower in two installments, based on the progress of the renovation process. The disbursement can only be made when the Bank is provided with the original property title deed and the first degree mortgage certificate, covering the principal loan amount with its interest.

* Annual percentage Rate: 5.96% (excluding Insurance).