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Azerbaijan Mortgage Fund resumes mortgage lending from June 1

26 May 2009 11:49 (UTC +04:00)

Under the terms of mortgage loan lending, home loans can only be lent to Azerbaijani citizens only in the national currency (not exceeding AZN 50 000) for 3 to 25 years , interest rate shall not exceed 8% per annum, loan size shall not exceed 85% of market value of mortgage collateral, monthly payment shall not exceed 70% of borrowerâ€™s gross monthly income, borrowerâ€™s life and labour as well as mortgage collateral shall be insured, borrowerâ€™s age shall not reach the government-set pension age at mortgage maturity date, collateral shall be valued by independent appraisers and principal and accrued interest charges shall be repaid in monthly equal installments.

AMF told APA-Economics that it reduced the number of partner lending institutions, insurers and appraisers to 17 from 22 by decreasing the number of insurers to 10 from 11 and the number of appraisers to 7 from 13.