Guarantee Fund destined to finance mortgage loans for members of the Mohammed VI Foundation for the Promotion of Social Work for the Education and Training Sector “FOGALEF”
In support of teaching staff, the Mohammed VI Foundation has set up a scheme to help its members become homeowners. This scheme, managed by the CCG, comprises a part relating to bank loans and one part to interest rate rebate.
Eligible beneficiaries
Any member of the Mohammed VI Foundation for the Promotion of Social Work for the Education and Training Sector, complying with the following requirements:
Not a homeowner. The applicant is not required to provide a non-taxation certificate, but a pledge in writing that he or she does not own property anywhere across the country, as well as a pledge to fully reimburse the loan to the bank, and the financial contribution to the Foundation, if it turns out he or she already owns property.
The overall repayment charge of all loans taken out by the applicant must not exceed 45% of net income featuring on the pay slip provided with the application. Net income does not include family allowances.
Eligible loans
Mortgage requirements:
Purpose: financing the purchase of main residence or plot of land and/or construction work to build main residence.
Quota: up to 100% of purchase excluding additional charges not covered by the FOGALEF guarantee.
Type: subsidised loans, with part of interest repayment paid by the Mohammed VI Foundation, and additional loans. Maximum loan amount and duration are:
Interest rebate
Max. amount of subsidised loan
Max. duration (inc. exemption period)
Eligibility for additional loan
2%
MD 200,000
20 years
yes
4%
MD 80,000
10 years
no
A member is entitled to an additional loan, within a limit of MD 500,000 (including subsidised loan), if his or her income allows for it.
Exemption: to finance construction work, an exemption (principal and interest) is granted for the loan release period which can not exceed 24 months.
Rates applicable to subsidised loans
Rates can be fixed or variable. The date of effect to be considered is the date the loan contract is signed. Maximum rates applicable are:
Fixed rate: maximum rate of 6.50 % per year (tax-exclusive) with a rate review for new loan applications every 2 years.
Variable rate: 6.25%.
For new loan applications, these rates can vary every 2 years.
Guarantee quota
The guarantee covers 100% of the subsidised loan principal, plus interest and, if need be, interest on late payment.
Submitting applications
Through a bank elected by the eligible beneficiary.
Interest rate rebate mechanism
The CCG manages on behalf of the Mohammed VI Foundation interest rate rebates on subsidised loans. The rebate amounts to the difference between the monthly payment based on the full interest rate and the payment based on the reduced interest rate.
Eligible beneficiaries