OREANDA-NEWS. September 22, 2014. At the end of the second quarter of 2014, Sviaz-Bank registered an increase in its share of the military mortgage market to 21.82%, according to the official figures from Rosvoyenipoteka Federal State Lending Institution (FSLI).

Sviaz-Bank places third, after VTB24 Bank and the Housing Mortgage Lending Agency (HMLA) in the total amount of loans issued to the participants in the Mortgage Accrual System within the framework of the lending organizations’ own programs as a ratio to the total amount of loans issued by Sviaz-Bank.

According to figures released by the FSLI Rosvoyenipoteka, Sviaz-Bank posted a growth of over 68%, from 1.9 billion to 3.2 billion rubles, in the loans it issued under its Military Mortgage program compared to the amount of loans it issued in the first quarter of 2014. In July and August of this year, the amount of loans Sviaz-Bank issued under its Military Mortgage program topped 3.3 billion rubles.

The Bank launched its Military Mortgage program in 2011. In the first month of the program, it issued loans in an amount of up to 2 million rubles each, and now it has increased this amount to 2.4 million rubles in a loan made to a single borrower in the military service.

“Military mortgages are our key product, and we are systematically building up our portfolio of mortgages starting from the launch of our program that is now an enormous success among our customers. We have made this break because our military mortgages are really affordable, in the true sense of the word,” said Olga Oleinik, Vice Chair of Sviaz-Bank’s Management Board. “We do not charge any commissions for loan issue, we keep our interest rates low, and we take a reasonably very short time to approve and make a loan available to the borrower.”

In the first year of a loan, the minimum interest is charged at a rate of 9.5% per annum in Russian rubles when housing is purchased on the secondary market and 11.3% if it is on the primary market, and falls to base starting at 10.5% on finished housing and up from 11.5% on housing under construction. Loans are issued for a maximum period of 20 years. No surety is required for a loan to be made.