Aiyl Bank together with Osh City Major Implements New Mortgage Project

Within this program frameworks over 350 families in country's southern capital will be able to buy apartments in houses passed over Osh Town Major Office by State Direction on Reconstruction of Osh and Jalalabad.

Another meaningful objective of the project is creating housing and financial funds for long-term mortgage program with Osh Major Office. So the funds received from sale of apartments will be allocated for construction of new apartment houses to be provided for future mortgage.

Considering project's social orientation the Bank will not take commission neither increase interest rate nor include operational expenses into cost of loans.

Who is eligible to take mortgage loans?

The priority candidates for mortgage loans are representatives of budget companies including educations institutions (secondary schools and kindergartens), medical and social institutions employees who do not have own houses.

For selection of candidates for mortgage loans a special commission at Osh Major Office was established including representatives from different state offices of the city.

Collegial body will selection of candidates for mortgage loans on the basis of submitted documents and will pass the list of beneficiaries over Aiyl Bank. The bank will consider their solvency and credit history.

What are the conditions of mortgage loans?

Mortgage conditions are very simple for future borrowers. Mortgage loans will be disbursed in national currency for period up to 7 years at 10% interest rate, borrower's contribution at least 30% of housing value, the collateral is purchased house. Grace periods are approved for principal repayment during first 3 months.

«This mortgage program is a very good support for Osh people who are in big need for houses. We expect the first mortgage loan will be issues at the end of March, Erkin Asanaliev, Board Chair of Aiyl Bank, is telling.

As 100% state-owned bank Aiyl Bank is the main agency bank for this mortgage program. The main factor to determine Aiyl Bank as a main financial partner was bank's achievements for the last years.

So as of 1.03.2016 Aiyl Bank reached the following figures:

Bank assets are 17,2 bln.som and increased more than 1,5 times comparing to similar period of last year. Loan portfolio is 10,2 bln.som and increased more than 1,3 times comparing to similar period of 2015 . At the same time loan repayment rate is over 99%.

Reference: Aiyl Bank completed conversion of dollar loans into KGS (http://www.tazabek.kg/news:402977)