OREANDA-NEWS.  March 23, 2012. Sviaz-Bank has reduced the interest rate it charges on loans made for new construction to 10% per annum in rubles, without requiring more collateral upon completion of construction, reported the press-centre of Sviaz-Bank.

Interest rates have been reduced by 2 percentage points under the New Construction program for customers having a favorable credit history meeting the Bank’s criteria.

The minimum down payment under the loan program for housing under construction must be at least 20% of the price of the property to be purchased. The maximum loan amount does not exceed 30 million rubles. Loans are issued for periods of three to thirty years.

“This is our halfway gesture to our customers who have proved to be reliable borrowers and now can take out loans for the purchase of apartments in houses under construction at a significantly lower interest rate under the mortgage program,” said Maria Zenina, Director of Sviaz-Bank’s Retail Bank Products Department. “To give an example, a family pays its mortgage on an apartment at the construction stage at an interest rate of 11.5%, and at a lower rate upon completion of the construction project, which frees up cash on the mortgage price. The savings can later be used to redecorate the same apartment.”

The program applies to the purchase of housing under construction – apartments, suites, townhouses, and residential houses selling with adjoining land plots – on the primary market. The list of properties under construction covered by the program is expanded periodically.