The mortgage loan subsidy program was launched last September. According to the head of Enterprise Georgia, more than 1200 residential apartments were sold under this program, while the volume of issued loans made up GEL 150 million.
According to Aleksandre Dzneladze, head of Banking Association Of Georgia, they skeptically considered this program, because the banking sector portfolio was not focused on this direction. As Dzneladze declared, GEL 141 million disbursed under the subsidy program was more than 3% of the total mortgage portfolio. The average loan amount within the program was GEL 100-130 thousand.
"The program works for the segment for which it is intended. No more than GEL 200,000 can be borrowed to buy an apartment, while low and middle-income families are the target of this program. This program is still continued. Like other programs, we will evaluate positive and negative sides of the program and then adopt changes accordingly," said Mikheil Khidureli, head of Enterprise Georgia.
The mortgage loan subsidy program is for families with newborns or with multiple children. The program involves subsidizing the interest on mortgage loans for five years term.
A potential beneficiary of the program can be:
•Family/single or widowed parent, if at the time of receiving the loan the child is under 12 months old, and born after September 1, 2021;
•Family/single or widowed parent, if at the time of obtaining the mortgage loan they have three or more children;
•Family/single or widowed parent who adopted a minor child after September 1, 2021.
The maximum loan amount is GEL 200 000. However, the cost of the purchased apartment / house or for building of the house may exceed GEL 200 000.
