Purchase of secondary housing with reconstruction in regions of the Kyrgyz Republic

Requirements for participants

Participant (target group): All citizens of the Kyrgyz Republic from 21 to 65 years of age* with low and middle incomes, living and working or doing business outside the cities of Bishkek and Osh, having the following income limit (the equivalent in national currency at the National Bank of the Kyrgyz Republic exchange rate at the time of loan application):

•       250 euros for families without children;

•       350 euros for families with one child;

•       400 euros for families with two children;

•       425 euros for families with three children;

•       438 euros for families with four children;

•       450 euros for families with five or more children.

Family status: A participant must have a family, while the participation of citizens who do not have children in the single-parent family, but having one parent is allowed

Work experience: 

• Total work experience is at least 3 years or at least one year of work experience in the given organization. Or
• Availability of a valid business at the time of loan application - at least 12 months, if the borrower is an individual entrepreneur engaged in commercial or agricultural activities based on a patent or certificate;
• Availability of a private subsidiary farm at the time of application for a loan - at least 12 months if the borrower is an individual who owns a private subsidiary farm;

Lack of housing**: Absence of own housing in the territory of the Kyrgyz Republic for the participant, the participant's spouse and minor children of the participant

No transactions with housing: No civil law transactions with housing throughout the Kyrgyz Republic for the last 3 years prior to the date of application for participation in the Program on the part of the participant, the participant's spouse and minor children

Other: Participant's ability to pay

* Age of 21 years at the moment of application for participation in housing programs implemented by the State Mortgage Company OJSC and up to 65 years of age at the moment of repayment of the latter

** Participation in housing programs implemented by the State Mortgage Company OJSC is allowed if there is a share of less than 12 sq.m. in the housing inherited by the participant, the participant's spouse and minor children of the participant

Requirements for purchased housing 

Subject of the mortgage loan: Apartment in a new apartment house or individual new residential house at the place of employment within a radius of 60 km (outside the cities of Bishkek and Osh)

Total area:

• Apartments in apartment buildings - no more than 80 square meters
• Individual residential houses - no more than 150 square  meters

Value: Between 10,000 and 30,000 euros per housing unit in the equivalent of national currency at the National Bank of the Kyrgyz Republic rate at the time of the loan application. 

Reconstruction involves only increasing the floor area of the housing or improving its energy efficiency:

• Replacing windows/roofing
• Installation of renewable energy sources
• Insulation/weatherization of external walls and/or roofing
• Modernization of the heating/cooling system

Other capital changes in housing design that improve comfort and energy efficiency

Basic loan terms

Target allocation of the mortgage loan: Purchase of housing on the secondary market with subsequent reconstruction (only increase in housing area or increase in its energy efficiency)

Loan currency: Kyrgyz som

Max. loan amount: Up to 24,000 euros in national currency equivalent at the NBKR exchange rate at the time of loan application

Loan term: from 5 to 15 years

Down payment: minimum 20% of the value of the new housing to be purchased*

Interest rate: 10% per annum including sales tax

Commission: Absence of any commission for administration of the mortgage loan and other additional fees

Loan security: Finished housing purchased under a mortgage loan

Insurance: Acquired housing is subject to compulsory annual insurance

Stages of lending for home purchase and reconstruction:

• The Bank approves the maximum possible loan amount, after which the borrower prepares design and estimate documentation for the purchase and reconstruction of housing within the approved loan amount
• After submission of the project for reconstruction of the purchased housing, approved, if necessary, by the local territorial bodies of architecture (in case of changes in the design of the house), the Bank allocates funds in stages:

1st tranche. Disbursement of money for the purchase of housing

2nd tranche. Disbursement of money for housing reconstruction

• After full completion of the reconstruction, the borrower shall, if necessary, put the building into operation with the participation of representatives of the local territorial body of architecture (in case of changes in the design of the building)
• Housing valuation is done

*In the absence of the down payment, it is possible to provide additional collateral at the discretion of the partner bank of the State Mortgage Company OJSC