Maximum amount of preferential mortgage loan increased in Azerbaijan
Azerbaijan, Baku, Feb. 4 / Trend /
Azerbaijani President Ilham Aliyev has signed a decree to amend the "Rules of granting preferential mortgage loans" on Monday, according to which the maximum loan amount under the social mortgage was increased from 35,000 manat to 50,000 manat.
According to the amendments, military men serving for over three years, as well as those in reserve and retired military men (except for those serving in urgent active military service) receive access to social mortgage.
Benefits of mortgage loans do not apply to military men in reserve and those retired for discrepancy, deprived of the military rank by court decision, deprived of the right to perform military duties for committing crime, imprisoned for a specified period or for life and recognized unfit for military service by military-medical commission due to illness. The benefits are not available during termination of contract with military men who are Azerbaijani citizens, loss of Azerbaijani citizenship, and in some other cases.
Social mortgage is issued by Azerbaijan Mortgage Fund (AMF) under the Central Bank at an annual rate of four percent and for the term of 30 years. The initial payment on a discounted mortgage is 15 percent.
According to the draft state budget for 2013, it is planned to allocate 40 million manat to finance social mortgage.
Today, 27 banks are authorized banks of AMF. Some 21 insurance companies and 11 appraiser organizations are participants of the mortgage market.
The official exchange rate is 0,7844 AZN / USD on Feb. 4.