Baku. Agshin Rafigoglu - APA-Economics. Islamic Banking Department of the International Bank of Azerbaijan intends to double period of mortgage lending in Sharia principles, Director of Islamic Banking Department of the International Bank of Azerbaijan Behnam Gurbanzadeh told journalists.
According to him, currently, the Islamic mortgage lending within internal mortgage program of the IBA is offered for the period of 10-15 years: “This program was conformed with the activity of Islamic Banking department. Our activity will be more active after amendments in the legislation next year. In this case, we can increase period of the mortgage lending for young families up to 20-25 years”, he added.
Regarding terms of this type of credit, Gurbanzadeh said that the houses are firstly purchased by bank and then sold to clients by lease.
Department director also noted that the mortgage lending in Sharia principles requires down payment: “At the same time, the down payment in the projects on housing construction financed by IBA will be lower”.
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