South African President Jacob Zuma has unveiled a R1 billion fund for low-income earners who struggle to obtain home loans from banks.

Under the plans, people earning between R5000 and R15,000 will be granted an R83,000 subsidy from provincial governments to make it easier for banks to approve their loan applications.

This would cater for a significant number of people who do not qualify for RDP houses but who earn less than required to qualify for a home loan, Zuma said.

The fund would become operational in April and be managed by the National Housing Finance Corporation.

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