Housing Loan
Program Goal:
In response to the Central Bank of Iraq’s small and medium-sized economic projects and its aim to support the residential sector, the Central Bank has allocated an amount of money to finance housing units through banks operating in Iraq. The Central Bank’s mechanism for granting these loans by providing the necessary liquidity is also a good opportunity for the bank to invest in this project and attempt to increase the percentage of cross-sales to customers by marketing the banks’ other products.
Target Group:
Public-sector employees whose salaries have been transferred and private-sector employees from reliable companies (those with fixed incomes).
Financing Ceiling per Loan:
- Minimum: IQD 5 million without interest
- Maximum: IQD 100 million without interest
Repayment Period:
Up to 15 years
Interest Rate:
First slide: 2.2% interest rate collected by the bank for borrowers with a salary transfer to the bank or borrowers vouched for by a guarantor with salary transfer (lifetime fixed interest)
Commissions:
- 0.05% one-time interest rate collected by the Central Bank at the beginning of loan tenor
- 0.6% commission of insurance companies if they guarantee the loan, to be deducted at the beginning of loan tenor
- Lump sum administrative commission of IQD 50,000
- Any other expenses, expenses incurred by the bank (validity issuance, etc.)
Guarantees:
- Salary transfer guarantee
- Public-sector employee’s guarantee
- Contract and bill of exchange for the amount, with interest
Minimum Salary/Income (Borrower – Guarantor):
Unspecified