Azerbaijan, Baku, 1 April / corr Trend I.Khalilova / The non-bank credit organization SOA Credit (called Shore Overseas Azerbaijan until last year) has reconsidered the terms of the financing of mortgage program, decreasing interests by 2%, Ajdar Aliyev, the depth chairman of the organization said.
Earlier the dwelling financing was carried out at the rate of 18% per annum, whist now it has decreased to 16%. Along with the interest rate the term to allocate the loan was reconsidered and increased from 10 to 12 years.
At present the loan portfolio of SOA Credit falls on the mortgage loan. The loan invested by the organization is expected to reach $30mln from the current $12.5mln, Aliyev said.
SOA Credit began mortgaging in 2002. The organization's private credit program is based on financing on commercial conditions, which for the first time since July 2006 has experienced some changes. Unlike the conditions of the Azerbaijan Mortgage Fund, functioning at the National Bank of Azerbaijan (NBA), SOA Credit allocates mortgage for repair, purchase of land areas, construction of private houses. The distinguishing peculiarity is that SOA Credit does not use the apartment/house as a security, but a different property. The initial payment fee is 20% of the lump sum.
Maximum amount of loan for purchase of dwelling is $100,000 and for repair up to $50,000, whereas ordinary mortgage was provided via the AMF until the cessation of crediting in summer 2007 in the maximum amount of AZN 50,000 and social mortgage in the amount of AZN 35,000.
The major founders of SOA Credit are the Georgian TBC Bank, which holds 75% of stock and the consulting company and Shorebank International consulting company, a part of U.S. group of companies Shorebank with 25% of stock. In 2000 Shorebank established SOA Credit. TBC Bank entered the SOA Credit's capital in December 2007 though additional investments, increasing the credit organization's capital to AZN 10mln.
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