Gov't promises to give loans to help Ghanaians pay rent advance

"In partnership with the private sector, we will commence the establishment of a National Rental Assistance Scheme (NRAS), with a seed of GH¢100 million. The scheme will crowd-in additional investment from the private sector, to provide low-interest loans to eligible Ghanaians to enable them to pay rent advance," the caretaker Minister for Finance, Osei Kyei Mensah-Bonsu has said.

Osei Kyei Mensah-Bonsu

The scheme, he said will use the additional investment from the private sector to provide low-interest loans to eligible Ghanaians to enable them to pay rent advance and ease the accommodation challenges in the country.

Presenting the 2021 budget statement and economic policy of the government in Parliament on Friday, March 12, 2021, Osei Kyei Mensah-Bonsu said the scheme will also receive additional investment from the private sector.

According to him, the leasing policy would cover medical equipment, vehicles, photocopiers, printers, and scanners, among others as part of measures to efficiently manage the capital expenditure budget.

On the student loan scheme, Osei Kyei Mensah-Bonsu noted that the government would commence planning towards the implementation of the Scheme to provide students, except for teacher and nurse trainees, an option to obtain a student loan without the requirement of a guarantor.

Vice President Dr. Mahamudu Bawumia, earlier revealed that the government is working on some initiatives to address the challenges affecting the provision of affordable housing and resolving matters involving rent.

These measures include the design of a policy framework to address rental issues, and the submission to Cabinet and subsequently Parliament, for approval, a new Rent Control bill to replace the existing, moribund Rent Act of Ghana (Act 220), which was passed in 1963.

He expressed worry about the lack of housing for low-income earners and disclosed that among others, the government is working to address the uncertainties in the housing market, which has led to landlords demanding two to three years rent advance, well beyond the means of many, especially the youth who have just completed schooling and looking to enter the job market.

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