Preferential Mortgage in Azerbaijan: Military Personnel Lead, Journalists Almost Absent

Having the keys to your own apartment or house in your pocket is one of the most cherished goals in every person's life. Mortgage lending has become one of the main paths to fulfilling this dream. However, not everyone has equal chances on this path. The state provides special benefits to certain segments of society - for example, teachers, military personnel, young families, making it easier for them to become homeowners.

Next year will mark 20 years of mortgage lending in Azerbaijan.

According to the Mortgage and Credit Guarantee Fund (MCGF), since 2006 to the present, mortgage loans worth more than 3.4 billion manats have been issued from the fund's resources, of which 988.5 million manats are preferential mortgage loans. Thanks to these loans, 53,829 families have improved their housing conditions. 67% of mortgage loan recipients are youth and young families.

Note that the following persons are entitled to mortgage loan benefits:

Members of young families belonging to the following categories:

- children of martyrs;

- children of Heroes of the Patriotic War;

- children of National Heroes;

- internally displaced persons or persons equated to them;

- persons who have worked in civil service for at least 3 years, including those who have served in special types of civil service;

- persons who have worked as teachers in state educational institutions for at least 3 years;

- persons with a PhD degree;

- persons with special merits in sports (honorary figures of physical culture and sports, winners of national competitions (1st place), prize-winners of international competitions (1st, 2nd or 3rd place);

- persons who have worked as journalists for at least 5 years and are included in the Media Registry.

Other categories:

- persons with a doctoral degree;

- persons who have worked in civil service for at least 15 years, including those who have served in special types of civil service;

- military personnel who have been in military service for at least 3 years (except for conscripts), as well as military personnel discharged to the reserve or retired (except for military personnel discharged to the reserve or retired in cases provided for in Articles 41.0.6, 41.0.7, 41.0.8, 41.0.10, 42.0.3, 42.0.4 and 42.0.5 of the law "On Military Duty and Military Service");

- persons with special ranks who have served in internal affairs bodies for at least 3 years;

- scientific workers who have worked in a scientific position for at least 3 years;

- persons who have worked as teachers in state educational institutions for at least 15 years;

- persons who have worked as journalists for at least 15 years and are included in the Media Registry.

- family members of martyrs (husband/wife).

- Hero of the Patriotic War (self, husband/wife).

- National Hero (self, husband/wife).

A family or person eligible for a preferential mortgage loan can use this opportunity only once.

The maximum amount of a preferential mortgage loan is 100,000 manats. The maximum loan term is 30 years. The minimum down payment for a loan must be at least 10% of the amount. The annual interest rate is set at 4% for loans without a guarantee and 3.7% for loans with a guarantee.

How many people from the preferential category have taken advantage of these conditions?

Military personnel

As BAKU.WS reports with reference to information provided by the MCGF to modern.az portal, more than half of preferential mortgage loans were received by military personnel. To date, 8,726 military personnel have used this opportunity, which is 51.7% of all recipients of preferential mortgage loans.