“FOGARIM” Guarantee Fund for mortgages for low or seasonal income groups
As part of the government’s policy designed to promote social housing, the government has set up a guarantee fund called “FOGARIM”, to secure bank loans granted on preferential terms to low and seasonal income groups, for the purchase or the construction of social housing.
Eligible beneficiaries
Any person meeting the following requirements:
To be a Moroccan national and provide a copy National Identity Card.
Not to be a government employee, a public sector employee, a regular. government temporary agent with a minimum 7 years of service, or an employee of a public company affiliated to the National Social Security Fund, “CNSS”. To this end, the beneficiary must submit an honour pledge.
To generate some income. Documentary evidence must be submitted by the beneficiary to this end.
Not to own a home in the province or the wilaya where the housing unit to be purchased or built is located. To this end, a non-taxation certificate must be submitted by the beneficiary.
Not to have already been granted a loan guaranteed by a state guarantee fund for social housing or interest rate rebate. To this end, an honour pledge must be submitted by the beneficiary.
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.
The overall cost of the social housing unit or its construction must not exceed MD 200,000, including tax and additional expenses, 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.
Monthly instalment: MD 1,500 including tax maximum.
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 monthly instalment and beneficiary’s age. All loan instalments must be scheduled and paid in before the beneficiary’s sixtieth birthday. However, this deadline can be extended beyond the sixtieth birthday if a third party provides sufficient security on behalf of the beneficiary.
Deferment: for financing construction work, a deferment (principal + interest) is granted for the fund release period which cannot exceed 24 months. A prior CCG agreement is required in case this period exceeds 24 months.
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 70%.
Eligible beneficiaries