Eligibility criterias

Mortgage lending experience

A minimum of 3 years (or a prepared plan to enter the mortgage finance industry within the next 12 months).

Guaranteed deployment and service platforms

Appropriate lending policies and housing financing strategies.

Possibilities and obligations of financing housing loans

Employees were trained by JSC "UzIQMK", MB or other specialized organizations. A specialized department or division of the credit department dealing with mortgage loans.

Financial and operational eligibility criteria

Compliance with all applicable central bank prudential standards and regulations, such as:

requirement for the minimum level of capital adequacy;

show profit in the report;

credit classification and provisioning;

Coefficients of problematic loans for housing loan portfolio and general loan portfolio; and

requirements against crimes of illegal embezzlement.

In addition, IMTs must perform the following:

maintain financial stability;

act in accordance with sound financial principles and practices (for example, preparation of unqualified audit reports in accordance with the guidelines of MHXS for the last two years);

Maintain credit and investment policy acceptable to ADB and the Central Bank; and

control and monitoring of implementation of investment projects by borrowers.

Corporate governance

Corporate governance system covering the central bank's effective identification, monitoring and management of all existing commercial risks, compliance systems with legal and regulatory requirements, financial information disclosure requirements for market participants and observers, corporate governance objectives, strategies and methods approved measures.

Information activities

Proven ability to provide mortgage loans nationwide, reflected in branch operations, credit information, etc.

Risk management procedures

Ability to manage risk through appropriate processes and/or procedures covering:

-credit risk;

-risk associated with asset and liability management;

-market risk (for example, interest rate risk and currency risk); and operational risk.

Compliance with Warranties

Environmental and social protection management systems to monitor compliance with ADB's environmental and social protection policies.

Purpose:

Structural changes (reconstruction) are not included.

The residence purchased with a mortgage loan must be the primary residence of the borrower.

Type of housing eligible for lending:

Individually built houses (courtyard), or apartments in a multi-storey building.

Houses that are not ready for living are considered non-compliant.

Eligible Borrowers:

Persons with regular (permanent) sources of income.

Mortgage credit limit:

To purchase housing:

- 400 million so'm.

For residential renovation:

- 80 million so'm.

Mortgage loan term:

To purchase housing:

- Minimum 10 years, maximum 20 years.

For residential renovation:

- maximum term is 10 years.

Interest rate:

To purchase housing:

UzIQMK rate + up to 5% commercial bank markup.

For residential renovation:

UzIQMK rate + up to 4% commercial bank premium.

Prepayment:

To purchase housing:

- at least 25%.

For residential renovation:

- not required.

Loan to home value ratio (LTV):

LTV ≤ 75%.

As the value of the residence, the smaller of the value specified in the appraised or sale contract is taken.

Maximum monthly net income of the borrower (summed together with the borrower's income in case of insufficient income):

15 million so'm.

(If the monthly net income of the borrower is not enough, only household members living together can be involved as additional debtors).

Total Debt Burden (DTI):

DTI ≤ 50% (taking into account the total current loan payments of the borrower and co-borrower).

Loan repayment schedule:

The monthly payment should be in the form of an annuity, without a grace period.

Collateral of a mortgage loan:

A house under a mortgage loan (for purchase or renovation).

Age of borrower:

18 years of age and older.

Geographical location of residence:

Across the country.

Credit history:

Refinanced mortgage loans should not have overdue debt (more than 30 days) from the period of loan allocation to refinancing.

The status of the loan at the time of refinancing:

There should be no overdue debts.

Residential insurance:

100% replacement cost of housing.

Residential property valuation:

Must be appraised by a specially licensed independent appraiser.

Second mortgage loan:

Impossible.

The following cases are called "Second mortgage loan" is considered:

- Obtaining a new mortgage loan for a house taken at the expense of a current mortgage loan.

- If there is an existing mortgage loan.

Social and Environmental Management System

(some issues):

Mortgage loans can be given to residences with asbestos (chrysotile)-cement roofing (slate) and in compliance with the requirements of the Social and Environmental Management System.

Gender Requirement:

At least 35% of refinanced mortgage loans must be provided to female borrowers.

Provision of the loan portfolio in relation to the amount of refinancing:

At least 125%.

For the city of Tashkent:

- up to 800 million soum

For the Republic of Karakalpakstan and regions:

LTV ≤ 75% The lower of the assessed value or the value specified in the contract of sale is taken as the value of the residence