Buy an apartment with a subsidized loan and enjoy smaller interest payments
 
From 1 July 2020, TBC joins the state programme for mortgage interest rate subsidy. Launched by the government to support the RE development and construction sector, the programme envisages funding of up to 4% of annual interest on mortgage loans for a period of five years.
 
What is the state subsidy programme?
 
The state subsidy programme is a government incentive aimed at promoting the RE development sector through funding part of the interest rate on mortgage loans.
 
Basic Conditions:
 
To qualify for the programme, a customer must apply for  a mortgage loan to buy an apartment  from a RE developer before the end of this year. The submission deadline for subsidy applications is 31 December, while the deadline for government guarantees is 20 December. The maximum loan amount is 200,000 GEL and the maximum loan tenor is 240 months. Customers are required to make at least 10% down payment and provide documentary evidence of participation. The programme only applies to loans in national currency.
 
Example:
  • A customer takes a 100,000 GEL mortgage loan for 180 months at 12.5% (a fully indexed interest rate), where the refinancing rate (the index) is 8.25% and the margin (the fixed portion set by the bank) is 4.25%.  
  • The subsidy will equal 4% (8.25-4.25). Hence, the customer will have to pay interest at 8.5% (12.5-4) instead of 12.5%. 
  • If the refinancing rate decreases to 6%, the Agency will fund 1.75 % (6-4,25), so that the customer pays 8.5% instead of 10.25%. 
  • If the refinancing rate equals 5%, the subsidy will be suspended and resumed only after the refinancing rate increases above 5%. 
  • If a customer applies for a 180 month 100,000 GEL loan at 12.5%, the government will fund 4% of the interest for 5 years. Thus, the customer will pay monthly 985 GEL instead of 1,240 GEL.    
 
For additional information please contact us on our 24-hour call center at *2727 or visit any TBC branch throughout Georgia.