Azerbaijan, Baku, Oct. 8 /Trend D.Nasibova/
Azerbaijani Bank Standard plans to increase its mortgage portfolio by 15 percent by the end of this year, the bank told Trend.
The mortgage portfolio of the bank increased by 30 percent since the beginning of the year, but it is expected that by the end of the year it will further increase by 10-15 percent.
The total mortgage portfolio of the bank stands at 32 million manat, 26 million manat of which were issued by the Azerbaijan Mortgage Fund (AMF), acting under the Central Bank of the country, and six million manat - by the bank's mortgage program.
Amount of the mortgage loan in the Bank Standard on its own program is up to 200,000 manat. Loans are granted for 25 years with an interest rate of 12.5 percent per annum. Initial payment for a mortgage loan is 30 percent of the total loan amount.
The maximum amount of a common mortgage loan through the AMF is 50,000 manat at the rate of eight per cent and a payback period of 25 years and under the social mortgage it is 35,000 manat at an annual rate of four per cent and a payback period of 30 years. The initial payment under the social mortgage is 15 per cent, while for conventional loan is 20 per cent.
Conditions of mortgage lending are as the following: loans must be issued in the national currency in manats and only to Azerbaijani citizens and the subject of the mortgage can only be an apartment or private house. The volume of the mortgage lending must not exceed 80 per cent of the market price and the monthly payment for a loan must not exceed 70 per cent of the debtor's monthly income. It is compulsory to take out an agreement on life insurance.
Preferable conditions are granted to members of families of war victims national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs, persons making special contributions to sport, as well as the military with at least a three-year service term. Each family having the right to such a mortgage loan can only use the chance once.
Since its creation in 1995, Bank Standard has conducted its activities primarily as a retail bank specializing in providing services to individuals. Bank Standard review the concept of development since 2004 and is now positioned in the financial market of Azerbaijan as a full-service commercial bank focused both on individuals and on the maintenance of the real economy and on provision its customers with the full range of financial services.
Official exchange rate on Oct.8 is 0.7851 AZN/USD