FNB Urges Developers to Secure Approved Permits for Construction Loans
By Praisebell Rosemond Larbi
The Business Development Head for Strategic Initiatives at First National Bank (FNB) Ghana, Edward Nyarko, has underscored the critical importance of presenting approved building drawings and permits when applying for construction loans, describing the documents as central to the bank’s risk assessment and loan approval process.
Speaking on Zed Decor Live on Zed 101.9 FM, Mr. Nyarko explained that approved drawings and permits serve as key validation tools, assuring banks that proposed building projects comply with statutory and safety requirements. According to him, these documents are not mere formalities but essential safeguards that protect both the developer and the financier.
He noted that the permitting process ensures that building designs have undergone necessary technical and safety assessments, including fire safety tests and planning approvals, before construction begins.
“The permit process is a validation mechanism. It tells us that the design has met critical safety standards, including fire safety requirements. That reduces the risk of financing structures that may later be deemed non-compliant,” he said.
Mr. Nyarko added that by insisting on proper documentation, FNB Ghana helps developers avoid future regulatory challenges while also safeguarding the bank’s exposure to construction-related risks.
Beyond financing, he said FNB Ghana places strong emphasis on customer education, ensuring that borrowers fully understand their obligations before committing to a construction or mortgage loan. He explained that the bank takes time to walk customers through repayment schedules, interest structures, and long-term commitments, enabling them to manage their facilities responsibly.
“We go beyond just giving out loans. We make sure our customers understand what they are signing up for, their repayment plans, and their financial commitments, so they can repay comfortably without undue stress,” Mr. Nyarko stated.
Touching on mortgages, Mr. Nyarko observed that many people are often intimidated by the concept simply because of the term “mortgage.” He explained that mortgages are designed to make property ownership more accessible, particularly given the high upfront cost of real estate.
According to him, mortgages allow individuals to spread the cost of purchasing a property over a longer period, making repayments more manageable. He noted that banks typically structure mortgage facilities to ensure that borrowers do not spend more than 40 per cent of their monthly income on loan repayments.
“Mortgages are meant to give comfort. Property is expensive, and mortgages help people own homes by spreading payments over time in a way that is affordable,” he explained.
Mr. Nyarko stressed that when properly structured, mortgages provide long-term financial comfort and stability, rather than burden. He encouraged prospective homeowners to seek accurate information and professional advice, noting that well-informed borrowers are better positioned to take advantage of financing options that support sustainable property ownership.
