Mortgage is becoming increasingly popular among the population of Uzbekistan. In accordance with the regulation "On the issuance of mortgage loans for the purchasing of housing to individuals", Khamkor Bank provides this service to citizens of Uzbekistan aged 20 to 50, UzReport.com reported.

It is important to note that the bank extends mortgage loans to clients above the age of 50, provided the latter undertakes to repay the loan before he/she reaches pension age. Thus, in January-June this year, the bank issued loans for over 1.8 billion soums.

According to the conditions set by the bank, the sum of the loan should not exceed 2,500 minimal salaries. The main conditions set by the bank: the housing being purchased serves as a loan collateral; the borrower should have life insurance and insurance against the risk of the loss of ability to work for the period of loan repayment; as well as the insurance of housing which serves as a loan collateral.

In certain cases, the bank keeps the right to require additional collateral (no less than 125% of the sum of the loan) in the form of: movable and immovable property, a third party guarantee, other forms of collateral as stated in the Khamkor Bank’s lending policy.

The bank lends for the period of up to 10 years. The initial installment is the minimum of 25% of the housing cost. The maximum amount of lending is 75% of the sum of the borrower’s monthly income. The annual interest rate required by the bank is 16%. The interest rate is subject to changes, according to the Bank’s interest rate policy.