Housing Loan

We finance house construction, purchase (including land), extensions and renovations. First time homeowners only pay 8% interest rate. Loan amounts depend on size of income and value of project. Extensions and renovations up to $10,000 may be financed by a 6% interest rate loan under our Microfinance Loan Program. Subsidies are currently available for new homes that are energy efficient.

How NDBP reviews your loan

NDBP, like other banks will look at several factors before offering a customer a housing loan. The first and most obvious factor is their income. Only a part of someone’s income on an annual basis is considered eligible to may for housing loans. Generally, this amount is under 50% of annual income but will also depend on other obligations of the borrower.

Quality of title to land is also important. NDBP generally only accepts land with Certificate of Title (CT) or Determination of Ownership (DO) and owners should be specifically identified. NDBP verifies ownership with the Bureau of Lands and Surveys or through an attorney hired for that purpose. The value of land is generally determined by a certified appraiser. The NDBP contracts both services at the borrowers’ cost.

The whole project cost is considered when considering a loan application. This includes fees and costs related to the loan. Costs related to the loan include plan certification where a Bank inspector reviews the plan for completeness and safety. During construction, the Bank releases funds as the project progresses. Payments are made directly to contractors or vendors as requested by borrowers.

The following is a simple table illustrating the different programs available at the Bank for housing:

Program Maximum Amount Interest Rate* Maximum Term Eligible Purposes
Housing Loan $3,000,000 10% 20 years Buy land for house, build house, buy house, pay for loan related fees
First Time Homeowner $3,000,000 8% 20 years Buy land for house, build house, buy house, pay for loan related fees, buy furniture, refinance other bank loans to 20%
Microfinance Loan – Housing $10,000 6% 5 years Renovate or extend house
Pre-Development Loan – Housing $10,000 6% 5 years Pay for plans, appraisals, title search, plan certifications, insurance, other fees, and equity for loan
Energy Efficiency Subsidy Program $6,000 N/A N/A Energy efficiency products and design for new homes, i.e., light colors, awnings

* Rates are subject to change without notice, Subsidy for energy efficiency is fixed dollar amount based on efficiency measures used.


Can't open a document? Download Adobe Reader.

Latest News

Mincer appointed President & CEO of NDBP
Ms. Mincer was appointed President/CEO of the bank on August 13, 2012. She is the first Palauan woman to hold the position of President...

Read more about this news

Energy Efficiency Subsidy Program (EESP)

The National Development Bank of Palau offers a subsidy to new home owners who install energy efficiency measures....

Learn more about this program

Business Loan

If you are interested on our Busines Loan, a checklist of documents are required for an application to be considered complete.

Learn more

How to Apply

If you are interested in the NDBP loan program, a checklist of general requirements for loans and forms may be downloaded from our website.

Apply Now!


  • 6% - Microfinance, Pre-development and Agriculture Loans
  • 8% - Small business, First Time Homeowner and Fishing Loans
  • 10% - Housing and Business Loans

Contact Us

National Development Bank of Palau, P.O. Box 816, Koror, Palau 96940
Phone: (680) 587-2578
Fax: (680) 587-2579