Demerara Bank raises housing loan ceiling from $30M to $40M

On Friday, Demerara Bank Limited announced that it has increased its Residential Housing Loan ceiling from $30 million to $40 million while maintaining an interest rate of five per cent per annum. The revised limit took effect on February 9.
Under the updated framework, residential loans of up to $40 million will attract an interest rate of five per cent per annum on a reducing balance. The bank stated that this makes it the only commercial bank in Guyana currently offering residential financing at that rate up to the new ceiling.
The revised tiered interest rate structure is as follows: up to $4 million requires 3.5 per cent per annum; $4,000,001 to $9 million requires 3.7 per cent per annum; $9,000,001 to $15 million requires 4.5 per cent per annum; and $15,000,001 to $40 million requires five per cent per annum.
The bank said the adjustment reflects changes in the residential construction sector, where costs have increased in recent years due to higher prices for materials, labour and contractor services. These factors, it noted, have made it more difficult for prospective homeowners to complete or finance homes within traditional lending limits.
According to the bank, the expanded ceiling is intended to align financing options with current market conditions and the needs of borrowers seeking to build, complete or purchase homes. Demerara Bank stated that access to financing should not become more restrictive as housing costs evolve. The institution said the revised framework allows customers to borrow higher sums where necessary without facing increased interest rates beyond the established tier.
The bank also indicated that homeownership remains a significant milestone for individuals and families, representing stability and long-term security. By maintaining its interest rate structure while raising the ceiling, the bank aims to support households pursuing home construction or acquisition.
Demerara Bank said the move is part of its role in supporting economic development and expanding opportunities for citizens. It maintained that adjustments to lending policies are intended to respond to market realities while promoting access to credit.
The institution also reaffirmed its commitment to providing financial services that assist customers at various stages of life, including homeownership.