The financial market in Uzbekistan is witnessing new lending offerings, with Kapitalbank purportedly launching a mortgage program titled "Comfortable House" aimed at facilitating housing purchases for local residents amidst challenging economic conditions.

Under the announced terms, the loan amount reaches up to 1 billion sums with a repayment period of up to 10 years. However, the initial down payment is set at a minimum of 20 percent, while the annual interest rate stands at a steep 21 percent, potentially imposing a heavy financial burden on average borrowers.

The lending institution claims there are options to slightly reduce the interest rate under specific conditions. Supposedly, the rate can drop to 20.5 percent per annum if the initial payment is formed using funds accumulated on a targeted "Mortgage" savings deposit within Kapitalbank. A further reduction to 20 percent is allegedly granted only to individuals possessing a positive credit history that meets the strict internal requirements of the bank.

The financing is marketed toward individuals, including self-employed residents of the Republic of Uzbekistan. In instances where personal income is deemed insufficient, borrowers are required to involve co-borrowers, reflecting the stringent risk-mitigation measures implemented by the financial entity.

Source: www.uznews.uz