OREANDA-NEWS. July 13, 2010. Sviaz-Bank has launched a Program under which it will issue loans to individuals who want to purchase real estate still under construction, such as apartments in condominiums, town houses together with land on which they stand, and private one-family residential houses and their adjoining land plots, reported the press-centre of Sviaz-Bank.   

A real estate loan may reach a maximum of 30 million rubles (loans are issued in rubles of the Russian Federation) for terms ranging from three to thirty years. Interest on loans varies between 12% and 12.5% per annum, depending on the loan term, the borrower’s contribution of his own funds, recommended insurance type, and several other conditions.

A single loan agreement can be made with up to three borrowers who are not necessarily related by blood or otherwise. The borrower is required to make a 20% down payment upon purchase of an apartment. No moratorium is put on early loan repayment.

“We offer loans to our customers who want to purchase housing still under construction actually on lending terms prevailing on the secondary housing market. As we see it, this approach will put new construction projects within closer reach of buyers, particularly in outlying Russian regions. Sviaz-Bank received mortgage applications for a total of 670 million rubles last May,” said Maria Zenina, Director of Sviaz-Bank’s Retail Banking Products Department.

Mortgage loans are made to citizens of the Russian Federation aged 24 years up for purchasing real estate under construction in Moscow and in all regions where Sviaz-Bank’s branches have operations.