OREANDA-NEWS. March 14, 2014. Sviaz-Bank (Vnesheconombank) has raised the maximum amount of loans it issues under its Military Mortgage program to 2,400,000 rubles.

The Bank launched its Military Mortgage program in 2011. In its first month, the Bank issued loans of up to 2 million rubles, and later in the year, it raised the maximum amount of loans to 2.2 million rubles.

“There is no issue more significant than giving housing to servicemen. All our innovations in this area are aimed, above all, at making mortgages more affordable for the military. Steady demand for military mortgages and rising costs of housing, among other factors, are the principal reasons behind our decision to raise the maximum amount of loans to 2.4 million rubles,” said Olga Oleinik, Vice Chair of Sviaz-Bank’s Management Board. “Military mortgage is the driving force of our mortgage product line, and the Bank plans to continue building up its portfolio in 2014 as well. Military mortgage is a social, affordable, and convenient mortgage, free of loan issue commissions, made at low interest rates, with a minimum number of insurance risks, within a minimum time frame of loan approval and issue, all for the benefit and convenience of our customers.”

The other program terms have not changed. The minimum loan interest rate charged in the first year is 9.5% per annum in Russian rubles, rising to 10.5% in the remaining years. Loans are issued for a maximum period of 20 years. No surety is required for a loan.

The Bank developed its Military Mortgage program on the lines of Federal Law No.117-FZ, Cumulative Mortgage System of Housing for Servicemen, under which a serviceman can purchase housing with mortgage funds three years after joining the cumulative mortgage system. Down payment is made for the purchase of housing and the loan is serviced by the Rosvoyenipoteka Federal State Institution from funds credited to a serviceman’s personal cumulative account.

In 2013, Sviaz-Bank was named among the three leaders in the size of housing loans issued to servicemen, and its share of the mortgage market today is equal to 15%.