Transfer of debt under preferential loan for the construction of housing for individuals

Living accommodations constructed (reconstructed, purchased) by agricultural organizations by attracting preferential loans can be sold to the individuals living in them, provided the debt under the preferential loan is transferred to the individual in accordance with the Decree of the President of the Republic of Belarus dd. 30.08.2005 № 405 “On certain measures on construction of residential houses (apartments) in agricultural organizations”.

In accordance with the Decree of the President of the Republic of Belarus dd. 30.08.2005 № 405 “On certain measures on construction of residential houses (apartments) in agricultural organizations”, agricultural organizations, other legal entities may transfer the debt under preferential loans received from JSC Belagroprombank for the construction (reconstruction) or purchase of a residential house (apartment), the conversion of the site into living accommodation, to the individual who possesses this residential house (apartment, living accommodation).

The debt transfer is performed under the individual’s application, depending on his solvency, approved by JSC Belagroprombank and the authorized body of this legal entity.

Interest rate for the use of the loan: 10% of the refinancing rate of the National Bank of the Republic of Belarus as of the date of the debt transfer under the preferential loan, but not less than 3% per annum (for large families – 1% per annum).

Maximum maturity: 20 years (for large families – 40 years).

Loan repayment and payment of interest shall be carried out in equal parts within the loan repayment period.

Families where one of the parents after the birth of the second and subsequent children is the receiver of the child care allowance (for children under 3 years old) get the delay for the loan repayment (including the interest for the use of the loan) within the above mentioned period.

Guarantee of fulfillment of obligations under the loan agreement:

if the loan amount does not exceed 50,0 (5 000) mln rubles or the individual is supposed to receive financial assistance from the state in the amount of 100% from the amount of monthly payments under the preferential loan, one of the following methods is used to guarantee the fulfillment of obligations under the loan agreement:

- mortgage of living accommodation constructed (reconstructed) or purchased at the expense of the preferential loan and provided to the individual for living;

- mortgage of living accommodation constructed (reconstructed) or purchased at the expense of the preferential loan and provided to the individual for living  and, additionally, guarantee of minimum 2 individuals;

* if the loan amount exceeds 50,0 (5 000) mln rubles, a guarantee of minimum 2 individuals and mortgage of living accommodation constructed (reconstructed) or purchased with the use of the loan and provided to the individual for living are used to guarantee the fulfillment of obligations by the individual under the loan agreement.

The Bank concludes the agreement on the debt transfer, the loan agreement with the individual.

The following documents must be submitted to the Bank to conclude the agreement on the debt transfer and the loan agreement:

1. Application on the debt transfer.
2. Copies of documents proving the identity of the individual and guarantors.
3. Questionnaires of the individual and guarantors.
4. Documents confirming the income of the individual and guarantors.
5. Copies of constitutive documents for the housing certified by the legal entity.
6. Copy of the decision of the authorized body of the legal entity on the provision of the housing to the individual for living certified by the legal entity.
7. Certified copy of the decision of the authorized body of the legal entity on the conclusion of the debt transfer agreement, the sales contract with the individual indicating the debt amount transferred to the individual.
8. Сopy of the decision of the executive committee to expel the housing from office accommodation or the document confirming that the housing is not an office accommodation any more.
9. Documents signed by Chief of the organization and Chief Accountant and stamped containing all the necessary information about the site and the housing.
10. Consent of the individual and guarantors for receiving data by the Bank, which is part of the credit line of the individual (guarantors), kept in the automated information system “Credit bureau” of the National Bank of the Republic of Belarus.

If needed, additional documents may be required.

Large families and young families who have debts under the transferred debt are provided financial assistance from the state to repay debts under conditions set in the Decree of the President of the Republic of Belarus dd. 06.01.2012 № 13 “On some issues on provision of state assistance for construction (reconstruction) or purchase of living accommodation to individuals”.