Azerbaijani bank ups mortgage portfolio by 35 percent in 2011

The portfolio of the mortgage loans that Unibank OJSC on-lends for Azerbaijan’s Mortgage Fund (AMF) reached 17.5 mn manat on September 1.

Unibank as one of the on-lending agents of AMF has issued 111 mortgage loans in the aggregate amount of 4,200,000 manat since the beginning of this year that accounting for 7% of all the loans on-lent from AMF. Unibank on-lent 447 mortgage loans (incl. 40 social mortgage loans) totalling at approximately 1,226,000 manat in the period from 2006 to 30 June 2011. The mortgage loan portfolio of Unibank grew by 35% with the number of borrowers rising by more than 30% in M811. It should be remembered that the mortgage loan portfolio rose by 5.25 mn manat during 2010.

Unibank resumed the on-lending from AMF on June 1, 2009. The mortgage loans given by AMF through its agents are drawn from the returns on the AMF bond issues; the loans are given in manat and only to the citizens of Azerbaijan from 3 to 25 years. The largest loan amount prescribed is 50,000 manat; the front-end instalment of the borrower must equal at least 20% of the value of the housing purchased. The mortgage loans from AMF do not carry the interest at a rate higher than 8% annually. The monthly loan paybacks should not exceed 70% of the total income of the borrower. The borrowers are obliged to insure their life and the ability to work as well as the property they buy on mortgage. The maximum social mortgage loan amount and interest rate are 35,000 manat and 4% annually; the maximum front-end instalment made by the borrowers is 15% of the value of the property to be purchased.

It should be mentioned that the mortgage loan applications are processed in the strict order of priority (as submitted). The following three branches of Unibank in Baku - Yasamal, the 17th Branch and Neftchilyar - as well as the up country branches in Sumgait and Gyanja issue the mortgage loans currently.


/Trend/