Police officers still eligible for housing loans at 5 per cent!

Belarsubank refused from the 14 per cent and 16 per cent p.a. loans for those in need of better living conditions. Only the 12 per cent loans for families with many children, 25.5 per cent (for people in need of better living conditions) and 28.5 per cent (general credits) have remained. But nobody has cancelled loans for military men! A policeman needs his department to approve of the loan, the bank explained:

"They can receive credits on favourable terms only if their department approves of it. They apply for a credit and their department will have to decide whether they need it or not. You need to apply for it at work before coming to us," Belarusbank explained.

But I still could not understand whether policemen could get credits or not. Belarusbank mentioned presidential decree #13:

“Credits on favourable terms can only be given or cancelled by a presidential decree. The bank finances credits for those who need to improve their living conditions,” the consultant replied.

You cannot calculate the sum of the credit and the payments easily (5% is just laughable. It’s almost free). But it turned out that there could be some “reducing coefficient”:

“Maybe you will have a reducing coefficient. A square metre can cost 7 millions but the bank may give you a credit as if it’s 3 millions,” Belarusbank said.

If you get a general credit, you will get only 55 thousand dollars for a flat that costs $70 thousand, or 75% of the cost.

“To get this credit, you need to make 30 millions a month. The first payment is 15 millions. You will overpay 1/1 billion roubles (the interest rate).”

 I asked the consultant whether many Belarusians took such credits and she advised me to think twice before doing it:

“Just think about it, the interest rate is 30%! You will overpay 150 millions every year!”

Photo: dw.de