Subsidizing loans to private developers
In order to stimulate supply from private developers, a tool was developed to subsidize interest rates on loans issued by second-tier banks to private developers.
Subsidizing the interest rate on loans issued by second-tier banks to private business entities for housing construction purposes is carried out as part of the implementation of the Nurly Zher State Program for Housing and Utilities Development for 2020-2025.
Requirements for receiving subsidies
Subsidizing is carried out only for loans issued to second-tier banks at a rate of interest that does not exceed the level of the base rate of the National Bank of the Republic of Kazakhstan by more than 5%, in effect at the time of the decision on subsidizing.
Annually, within the framework of the state program, subsidies are allocated from the republican budget to reimburse 7% per annum of the interest rate on loans to developers.
A private developer offers at least 50% of housing at a fixed selling price per 1 square meter:
• up to 260 thousand tenge inclusive – in the cities of Nur-Sultan, Almaty and their suburban areas, Shymkent, Atyrau, Aktau;
• up to 220 thousand tenge – in other regions.
A private developer sells housing through direct sales, loans from Otbasy Bank JSC, second-tier banks, the 7-20-25 mortgage program and programs of subsidiaries of Baiterek NMH JSC.
The procedure for subsidizing the interest rate on loans issued by second-tier banks to private business entities for housing construction purposes is approved by the authorized body.