The objective of BANDESAL's construction loans is to provide financial resources that are viable and profitable, prioritizing companies that generate employment, improve health and education services, generate positive social impact, and are environmentally friendly.
This credit can be accessed by individuals or legal entities engaged in the construction industry.
The construction of housing projects, with a sales price of up to US$200,000 per housing unit, has a maximum term of 6 years with a grace period of up to 2 years. Working capital has a maximum credit term of 5 years with a grace period of 1 year.
For the acquisition of machinery and construction equipment, reconversion or expansion, which also includes production plants, energy generation projects, commercial premises or offices that promote development and subdivisions that have basic services; it has a maximum term of up to 15 years with a grace period of 2 years.
The credit conditions for urbanization and construction of housing are up to 36 months; in projects that expand the construction of 500 or more housing units, the term may be extended up to 72 months.
Another of the credit conditions is that the persons engaged in the construction business must have a pre-qualification from the Fondo Social para la Vivienda (FSV) or be qualified as social interest housing.
Current situation of the construction industry
In a construction situation report of the Cámara Salvadoreña de la Construcción (CASALCO), it is reported that during 2020 the amount of credits granted for the acquisition of housing went down, while in 2021 it went up.
The monthly interest rate variation of loans over one year term for home purchase in march 2021 dropped to 7.22% and in april 2021 rose to 7.29%.
The Banco Central de Reserva de El Salvador (BCR), indicates in a bulletin of the quarterly Gross Domestic Product (GDP) the volume index in the construction area in march 2020 was 79.27% and in march 2021 it was 107.26%.