Royal Bank issues loans worth more than 1.5 million manat on preferential terms through Mortgage Fund
Azerbaijan, Baku, Oct.11 / Trend N. Ismayilova /
Azerbaijani Royal Bank since early resumption the mortgage lending in the country (June 2009) issued 255 mortgage loans worth 10,668 million manat through the Azerbaijani Mortgage Fund (AMF) under the Central Bank of Azerbaijan, the bank said.
"So far, the bank has issued 213 standard mortgage loans totaling 9.3 million manat, as well as 42 loans on preferential terms worth 1.4 million manat," the bank said.
The total amount of the mortgage portfolio of the bank today exceeds 30 million manat.
Terms of mortgage lending by the fund acting under the aegis of the Azerbaijani president are as follows: loans must be given in manat and only to Azerbaijani citizens; mortgages may be granted for apartments and private house; the amount of mortgage loans must not not exceed 85 percent of the market value of the mortgaged property; the monthly payment for a loan should not exceed 70 percent of the monthly income of the borrower; the amount of life insurance should not exceed the size of the mortgage loan.
The Azerbaijani mortgage fund of the Azerbaijani Central Bank resumed administering loans in 2009 after suspending activity in summer 2007 because of a lack of funds.
The official exchange rate is 0.8020 manat to $1 Oct11.