Azerbaijan, Baku, March 6 / Trend , I.Khalilova/
Zamin Bank resumed mortgage lending which was suspended late last year, Chairman Zohra Guliyeva said. The terms of the mortgage loans have not changed. Interest rates range from 10 to 15 percent annually for a period up to 15 years. The bank provides up to 200,000 manat to one client.
"An innovation is that the bank does not require a certificate confirming payments, which is a compulsory requirement for obtaining loans via the Azerbaijani Mortgage Fund (AMF)," she said.
Loans are issued for clients to purchase apartments in newly constructed buildings on the basis of contracts with construction companies. This reduces risks in the event of non-repayment.
Zamin Bank's mortgage portfolio is 10.5 million manat. One million manat accounts for credit via the AMF.
In 2008, the bank introduced a mortgage crediting program to continue stagnation in Azerbaijan's mortgage market. In July 2007, the bank suspended mortgage crediting.
The issue of mortgage credits via AMF was improved on the basis of a presidential decree. The rules for privileged mortgage credits have been confirmed.
|
Previous |
Common mortgage credits |
Social mortgage |
|
|
Loan term |
15 years |
25 years |
30 years |
|
Primary fees |
30% |
0-15% |
0-15% |
|
Maximum loan sum |
30,000 |
50,000 |
35,000 |
|
Maximum interest rate |
12% |
8% |
4% |
|
Annuity payment ratio to incomes |
50% |
70% |
70% |
|
Insurance types |
Property and life insurance |
Property insurance |
Insurance |
|
Term of default |
Two months |
Three months |
Three months |
On March 6, the official exchange rate is 0.805 manat to $1.
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