Azerbaijani banks given time to connect to e-mortgage
Baku, Azerbaijan, Feb. 3
By Jamilya Jafarova - Trend:
All authorized credit organizations of Azerbaijan Mortgage Fund under the Central Bank should connect to the portal "Electronic mortgage" before February 5, the banking market of the country told Trend Feb. 2.
It is reported that the corresponding instruction was directed to the banks.
Electronic mortgage in Azerbaijan was launched on February 2, 2015. Atabank, Khalq Banki, Qafqaz İnkishaf Banki, Kapital bank, Bank Respublika have already connected to the portal. Pasha Bank, NBC bank, Bank Technique, Yapi kredi bank, Demir bank, Unibank, etc. are currently in the process of connecting, according to the survey.
Today the authorized banks of the AMF are 28 banks out of 45 banks operating in the country.
Launch of the portal provided an opportunity to apply for getting a mortgage loan online. However, the procedure for filing documents remained the same. Accordingly, the launch of e-mortgage will not affect the terms of processing the loan as well.
AMF believes that the new service will facilitate getting a loan, increase transparency of mortgage lending and strengthen the monitoring mechanism of the fund.
Only citizens of Azerbaijan have access to the portal to apply for a mortgage.
The maximum amount of a conventional mortgage through the AMF is 50,000 AZN at a rate of 8 percent and a maturity of 25 years. The amount of a social mortgage is 50,000 AZN at an annual rate of 4 percent and the term of 30 years. The initial payment under the social mortgage is 15 percent, while for a conventional loan - 20 percent.
Mortgage terms are as follows: loans must be issued in national currency, AZN, and only to the citizens of Azerbaijan, the subject of the mortgage can only be an apartment or private house, the amount of the mortgage should not exceed 80 percent of the market value of the property, the monthly payment for a loan must not exceed 70 percent of monthly income of the borrower, the presence of an agreement on life insurance and other conditions.
Preferable conditions are granted to members of families of war victims, families of National Heroes of Azerbaijan, internally displaced persons, civil servants with at least a three years' experience, candidates and doctors of science, 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 use the opportunity only once.
The loans amounting to 134.45 million AZN were issued through the AMF in 2014. This increased the total volume of housing financing to 633.28 million AZN. The total number of borrowers who received mortgage loans reached 15,842 people.
The largest number of mortgage loans of the authorized members of the fund were issued to AG Bank - 1310, Khalq Bank- 1265, Bank Standard - 1245, Muganbank - 1089, Demirbank - 1074, Zaminbank - 1017, Bank Technique - 881, Bank Respublika - 838, Unibank- 806. They are followed by Nikoil Bank - 695 loans, Gencebank - 537, Atabank - 531, Kapital Bank - 530, AFB bank - 490, Turanbank - 482, International Bank of Azerbaijan - 349, NBC Bank - 293, Bank of Baku - 185, Expressbank - 123, Kredobank -115, Bank BTB - 63, Bank Silkway - 61, Bank Avrasiya- 53, Amrahbank - 48, Pasha Bank - 46, Qafqaz İnkishaf Banki - 46, AzerTurkBank - 28, Azerbaycan Senaye Banki- 17, Rabitabank - 15, Azerbaycan Kredit Banki - 14 and Yapi Kredi Banki - 11.
The official exchange rate for February 3 is 0. 7844 AZN / USD.
Edited by CN