Nigerians in the Diaspora are debating the new MREIF home loan scheme. While some say the 12% rate is high, others argue it’s fair given Nigeria’s 33% inflation rate.
Nigerians in the Diaspora are reacting to the newly launched MREIF home loan scheme, with some expressing concern over the 12% interest rate and additional 2% in fees.
In a post on X, @compoundingnaira argued that the total 14% cost makes the loan unattractive. “Any serious Diaspora in North America should be able to get a 6–8% loan. Europe offers even cheaper rates,” he said.
Countering the view, @JayKezie stated, “No bank in North America will give an immigrant a mortgage to buy a property in Nigeria.” He added that lower interest rates abroad are due to lower inflation. “Nigeria’s inflation rate is 33 percent. So, 12 percent loan is cheap.”
Referencing Canada, he noted, “Inflation is 1.9%, interest rate 2.75%. A simple Google search will help.”
@Kadupee, another user, questioned why borrowing is expensive in Nigeria. “CBN needs to do better,” he said.