BAKU, Azerbaijan, July 4
By Eldar Janashvili – Trend:
The leading Azerbaijani bank, Kapital Bank OJSC, has started the process of expanding the coverage of mortgage lending, which is an integral part of the retail lending sector, Chief Retail Sales Officer at the Kapital Bank OJSC Ramil Imamov said, Trend reports citing the bank.
Imamov said that the issuance of mortgage loans is one of the Kapital Bank’s primary activities, and as part of the current expansion, the volume of loans financed by the state has been increased, and the issuance of loans at the expense of the bank’s own funds has started.
“If we look at the statistical indicators, we will see that the Kapital Bank’s mortgage loan portfolio has reached 200 million manat ($117.6 million), and the placement of loans issued from the Azerbaijan Mortgage and Credit Guarantee Fund has grown by a quarter compared to the same period last year. One of the bank's future priorities is not only maintaining the current portfolio and the volume of loans issued by our bank through the Fund, but also their further increase,” said Imamov.
He also noted that the total amount of bank loans issued within the apartment lending project offered by the State Housing Development Agency, amounted to 3 million manat ($1.7 million) in 2019. Thus, Kapital Bank's loan portfolio for this type of mortgage totaled 6 million manat ($3.5 million).
“This year, we also intend to provide loans to apartments on new projects of the State Agency for Housing Construction and will handle the citizen appeals promptly,” the director said.
“Since May of this year, Kapital Bank has started to issue social mortgages on favorable terms in various regions of the country, mainly for young families and low-income groups. For a little more than a month, 22 citizens have used this product, and the volume of loans issued to these persons made up 500,000 manat ($291,117). The issuance of loans totaling10 million manat ($5.8 million) are envisaged for this product; applications are accepted regularly,” said the bank’s representative.
“Along with the foregoing, Kapital Bank started to issue a new type of domestic mortgage loan in Baku, Absheron and Sumgayit, under which customers can receive the mortgage of up to 500,000 manat ($291,117) for a period of 10 years. Through this mortgage, we’re going to cooperate with a number of housing construction cooperatives, and thus, we will also provide support to business entities working in the construction sector,” Imamov noted.
“We are currently offering a three-month discount on the rate for the corresponding product, under which borrowers can use an internal mortgage loan with an annual interest rate of 10 percent. This campaign will last until September 30, 2020,” he added.
Kapital Bank is the legal successor of Sberbank Azerbaijan and provides services to the population in 100 branches and 12 branches, being a financial institution with the largest service network in Azerbaijan.
(1 USD = 1.7 manat on July 4)
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