Peru company to offer 30-year home mortgages

LIMA Nov 28 (Reuters) - Peruvians will be offered up to $500 million in home loans with terms of 30 years by the InVita insurance company, officials said on Wednesday as access to credit widens in the poor Andean country during swift economic growth.

InVita, a unit of Peru's Grupo Wiese and ING, said it will be the first company to offer long-term loans to first-time home buyers.

"The principal requirement will be a minimal level of family income, which will affect the amount of credit, but in any event this will offer loans to people who today do not have them," said InVita's president, Caridad de la Puente.

Peru's economy minister, Luis Carranza, said the long-term home loans are a sign the country is enjoying a "virtuous cycle of strong growth." The economy is expected to grow about 8 percent this year.

Borrowers in many developing countries suffer from short-term loans at high-interest rates, making loans prohibitively expensive.

But Peru's benchmark lending rate is 5 percent and low inflation and climbing international reserves have helped extend loan terms.

"If we extend terms for home loans, the capacity of people to carry debt will increase as timelines for repayment increase significantly. This is good for the country," Carranza said.

(Reporting by Terry Wade; Editing by Diane Craft)