Housing construction in the 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: Obligatory presence of 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 a residential house

Collateral: The land plot intended for housing construction should be owned by the participant, should not be burdened with debt obligations or be the subject of legal proceedings. Future constructed housing will also be pledged

General construction requirements

• The maximum term of construction and its commissioning is no more than 18 months from the date of issue of the first tranche for construction.  In case of violation of the term, the Bank has the right to apply penalties under the terms of the Bank
• The maximum cost of housing construction per 1 sq.m., taking into account the works and construction materials should not exceed 60,000 soms

Total area: Housing construction - no more than 150 sq.m.

Basic loan terms

Target allocation of the mortgage loan: Construction of housing or completion of an unfinished residential house

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: Land plot, including future residential house

Insurance: After completion of construction, the housing must be insured by the borrower against the risk of loss or damage to the mortgagee for the entire balance of the mortgage loan during the entire repayment period of the mortgage loan. The insurance amount must be at least equal to the amount (sum) of the claim secured by the mortgage.

Stages of lending for housing construction

• The Bank approves the maximum possible loan amount, after which the borrower prepares design and estimate documentation for the construction of housing within the approved loan amount
• Upon submission of the approved project for construction of a residential house, the Bank gradually allocates funds for construction of a residential house

1st stage. Issue of funds for installation and laying the building footing

2nd stage. Issue of funds for the construction of walls

3rd stage. Issue of funds for installation of floors and slabs

4th stage. Issue of funds for finishing works and construction completion

• After full completion of construction, the borrower should put the architecture into operation with the participation of representatives of the local territorial authority. The period of construction and commissioning should not exceed 18 months in total
• Carries out the procedure of registration of finished housing in the local territorial representative office of the Department of Registration of Rights to Immovable Property, obtains a technical passport of housing
• To evaluate a residential house