“FOGALOGE-PUBLIC” Guarantee Fund for mortgage for civil servants and government employees
As part of Government policy to promote social housing, the Government has set up a guarantee fund called FOGALOGE-PUBLIC, to secure bank loans granted on preferential terms to civil servants and government employees, to build or purchase social housing.
Eligible beneficiaries
Applicants meeting the following requirements:
To be a Moroccan national and provide a copy of a National Identity Card
To be a tenured civil servant or government employee (central administrations and external services), excluding the education sector. Temporary employees with a minimum of 7 years of service, employees of local authorities and public institutions and companies, and military personnel, are also eligible. A work certificate specifying the number of years of service, the position held, and the expected date of retirement, must be submitted.
To have a net yearly income, after tax and social charges, not exceeding MD 72,000 (excluding family allowances), certified by a salary certificate and the last three pay slips.
Not to own a home in the province or the wilaya where the house to be purchased or built is located. To this end, a non- taxation certificate must be submitted by the applicant.
Not to have previously been granted a loan guaranteed by a state guarantee fund for social housing or interest rate rebate. For this, an honour pledge must be submitted.
Eligible housing
Housing to be purchased or built must comply with the following terms:
The unit must be the beneficiary’s main place of residence. The latter must submit an honour pledge stating that the unit will be strictly used for living purposes and/ or for first-degree family members only.
The unit must be located in the province or the wilaya where the beneficiary is employed. However, the unit financed can be located in another province or wilaya, on condition that it is used for living purposes by first-degree family members.
The overall cost of the social housing unit or its construction must not exceed MD 350,000, all tax and fees included, within a limit of 10% of the purchase price as specified in the promise-to-sell document, or of the construction costs.
The housing unit to be purchased or built must be the object of a regular and legal property deed. For construction, an authorization to build must be provided.
The financing of land purchase is not covered by the Fund guarantee.
Eligible loans
Bank loans granted on the following terms:
Object: to finance the purchase or the construction of main place of residence.
Quota: up to 100% of the overall cost of purchase or construction of housing unit.
Interest rate: fixed, with estimate at the bank’s discretion in taking into account the Fund guarantee.
Duration: 25 years maximum, including the deferment period, depending on the beneficiary’s age. The last loan instalment must not be scheduled after the date of retirement of the beneficiary, so that the date of submission of application to CCG + duration of loan + 6 months validity period of guarantee agreement must not exceed the date of retirement of the beneficiary.
Deferment: for financing construction work, a deferment (principal + interest) is granted for the fund release period which can not exceed 24 months.
The overall repayment charge of all loans taken out by the beneficiary must not exceed 35% of net income, after tax and social charges, featuring on the income document or salary certificate provided on the date the application was submitted to the bank.
Quota and extent of guarantee
The Fund guarantee secures the repayment of principal on financed loan, with additional contract interest and late payment interest, up to:
20% if loan contract duration does not exceed 10 years.
40% if loan contract duration is comprised between 11 to 20 years.
Eligible beneficiaries