Sberbank accepts annual maximum of applications set by Russia’s Ministry of Agriculture eight hours into Rural Mortgage program launch at 3%
- 1,100 Sberbank customers manage to apply for soft mortgage loans
- All-new mortgage based on government program called Comprehensive Rural Area Development with subsidized rates
May 21, 2020, Moscow — Sberbank announces that within eight hours since Rural Mortgage at 3% was launched the bank has registered the annual maximum of applications set by the Agricultural Ministry of Russia.
The 12M state subsidies are capped at RUB97 mln for Sberbank to issue village mortgage loans. Inside eight hours the bank accepted a total of 1,100 rural mortgage applications overshooting an aggregate of RUB3 bln.
Under the terms of the program, real estate can be bought in the secondary market from an individual or a company under a sales agreement or in the primary market from companies only under equity participation agreements and assignment of claims.
A piece of real estate must be located in the rural areas of Russia anywhere except for Moscow, Moscow Region, and St. Petersburg.
The upper mortgage limit is set at RUB5 mln for Leningrad Region and Far Eastern Federal District, and reaches RUB3 mln in other regions of Russia. Mortgages have a maximum term of 25 years and require a down payment of at least 15%. The program will run until December 31, 2022.
Nikolay Vasyov, Director of DomClick Division, Sberbank,“We see that the Rural Mortgage program enjoys great demand. In eight hours since its launch, Sberbank has welcomed an annual limit of applications. The program has several features that distinguish it from other state programs in terms of the registration routine: each customer must be okayed by the ministry to control the limit, reporting information needs to be submitted on paper, and real estate available on loan must be agreed with local authorities to meet the criteria. We hope that soon all the routine under the Rural Mortgage program will be simplified significantly so that the terms for obtaining mortgage loans can be reduced from 25-30 days to 2-3 days.”