Baku, Azerbaijan, Feb.10
By Huseyn Veliyev- Trend:
Some 465 potential borrowers have submitted their applications for getting a loan online since early February, since the commissioning of the "Electronic mortgage" portal, said the Project Manager for the creation of electronic mortgage system Elchin Ghazanfarov at a briefing at the Information Technology Center (ITC) of the Ministry of Communications and High Technologies of Azerbaijan.
Some 300 applications were received for the obtaining of conventional mortgage, and the remaining 165 fall on the social one.
The portal was commissioned on February 2.
"If earlier payments on mortgage loans were made through banks, today it became possible to pay through both the state payment portal and the post offices by obtaining personal codes on the website of the Azerbaijan Mortgage Fund," Ghazanfarov said.
Using the "personal account" on the portal will make it possible to trace the loan payments.
"At present, the possibility of integration of mortgage portal to the "e-government" portal and the use of digital signature is being considered," he said.
Insurance companies, appraisal and authorized credit institutions gained access to the "Electronic mortgage" system, which will allow them to carry out all technical procedures in real time, which will accelerate the lending process.
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.
Currently, the maximum amount of a common mortgage loan through the AMF is 50,000 AZN at a rate of 8 percent with a payback period of 25 years. Terms under the social mortgage are 50,000 AZN at an annual rate of 4 percent with a payback period of 30 years. The initial payment under a social mortgage is 15 percent, whilst a conventional loan is 20 percent.
Conditions of mortgage lending are as follows: Loans must be issued in Azerbaijani AZN and only to Azerbaijani citizens and the mortgage can only be for an apartment or private house.
The volume of mortgage lending must not exceed 80 percent of the market price and the monthly payment must not exceed 70 percent of the debtor's monthly income. It is compulsory to have an agreement on life insurance.
Preferential conditions are granted to family members of war victims, national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs and those making special contributions to sport as well as to the military with at least a three-year service term. Each family having the right to such a mortgage can only use the opportunity once.
At present, the authorized banks of the Mortgage Fund are 28 banks.
Some 21 insurance companies and 16 appraisal organizations are the participants of the mortgage market.
Edited by CN
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