Have you decided to build your own home? Have you drawn up the plans and chosen the site? But you're short of resources?
Crédit Populaire d'Algérie can help you build your dream home according to your style and preferences.
What is a construction or extension loan for individual housing?
It is a loan used to finance the construction or extension of an individual home.
For whom it is intended?
You can benefit from this loan if you are:
- Any natural person of Algerian nationality, whether resident or non-resident in Algeria, who has legal capacity.
- Own the land on which the construction work is to be carried out.
- Evidence of a stable, regular income equal to at least one time the guaranteed national minimum wage
- For foreign residents, 50% of income earned must be converted into national currency.
Financing conditions:
- Loan amount: The loan amount is capped at:
- 90% of the cost of construction works
- 100% of the cost of extension works.
For young Algerians under 40 years of age residing in Algeria, the financing can reach 100% of the cost of constructing or extending individual housing.
The loan amount is calculated based on the applicant's income, with a deduction ranging from 30% to a maximum of 55%.
For the increase of the loan amount granted, the bank may accept a joint guarantee from a spouse or single direct relative (parent, sibling, child).
- Personal contribution:
A minimum of 10% of the construction costs must be financed by the individual. For extension works, this refers to individual housing.
This requirement may be waived if the applicant is under forty years of age, provided that they have the necessary debt capacity for construction.
- Repayment duration: The loan duration can be up to 40 years, and is determined by the applicant's age up to a maximum of 75 years.
- Management fees: 10,000 DZD including taxes (see current bank terms and conditions).
- Application processing fees: 10,000 DZD including taxes (see current bank terms and conditions).
- Interest rate : The interest rate is variable and is set out in the general banking conditions in force.
- Loan repayment: The loan is repaid in constant monthly instalments over the entire loan duration.
- Deferment period: the deferment period is set at a maximum of six months from the date of:
- Mobilisation of the loan when used in a single instalment
- Mobilisation of the last instalment if the loan is used in several instalments.
- Type of guarantees: The guarantees to be obtained are :
- A first-ranking notarised mortgage in favour of the bank on the land and the buildings to be constructed;
- Death and absolute permanent disability insurance (IAD) in favour of the bank;
- Home insurance delegated to the bank ;
- Natural disasters insurance delegation;
- A deed of joint guarantee if the income of the applicant's spouse and/or direct relative is taken into account when calculating their repayment capacity.;
File constitution
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- Copy of the land ownership deed or sales contract issued by the estate.
- A valid building permit issued within the last three years.
- Negative certificate of mortgage registration;
- Property existence, evaluation and appraisal report issued by a bank-approved consultancy office, highlighting the following elements:
- Progress report justifying the self-financing proportion.
- Estimated and quantified construction costs;
- Provisional construction schedule;
- Family record of civil status and copy of official identity card.
- Certificate of occupancy of current home or residence certificate (to prove applicants exact address).
- Loan application form (to be completed at the branch of your choice).
- For wage earner applicants:
- Pay slips for the last three months;
- A recent work certificate.
- Annual Salary Declaration (DAS) for private-sector employees.
- For non-wage earner applicants:
- Proof of activity (trade register or licence).
- Tax certificate (C20 series for the last three fiscal years);
- Cleared extract from tax registers or repayment schedule.
- For retired people:
- Income certificate issued by the national pension fund.
- For nationals residing abroad (to be authenticated by the Algerian consulate):
- Evidence of residence abroad;
- An indefinite-term employment contract supported by the last three payslips for wage earners.
- Proof of activity supported by tax and social security certificates for non-wage earners.