The Commercial Bank of Syria announced on 16 September the launch of a “housing loan” to finance the purchase of a residential or commercial property, whether ready for habitation or still in the construction phase. The bank set the maximum limit of lending at the amount of 100 million Syrian pounds (about 50,000 USD), for a maximum term of 20 years with the same property as a security till the repayment of the loan.

The final value of the loan’s interest is determined upon granting it depending on the term and value of the loan and type of property.

The “Commercial Bank” set the loan interest for residential property at 10 percent annually for a maximum period of ten years, 11 percent annually for a maximum period of 15 years, and 12 percent annually for a period of more than 15 years.

While the bank decided the loan interest for commercial property at 13 percent annually.

The bank placed an annual interest on the decreasing balance of the housing loan, with a financing rate of 60 percent of the property valuation as a maximum.

According to the official website of the Commercial Bank of Syria, only one repayment partner can be accepted for the loan, and only one ownership partner can be accepted, with the client and repayment partner aged no more than 65 years at the end of the loan repayment term.

As for the loan repayment, it is to be paid in equal monthly installments, through the branches of the Commercial Bank of Syria or a bank card, and pre-paying can be made for one or more installments in any of the bank’s branches.

The penalty interest rate will be applied by the Commercial Bank of Syria upon failure to repay instalments with the borrower pledging not to sell the property until the loan balance is fully paid and finished.

The borrower cannot obtain more than one loan to buy a residential or commercial property unless after the full repayment of the previous loan, whether at the end of the loan term or before it.

Natural Syrian citizens and those in their similar status who work permanently in the public and private sector, along with pensioners, and military personnel are allowed to housing loans.

Besides, the owners of enterprises, businesses, self-employed people and crafts people, who have a trade, industrial, professional or craft record for at least one year are also entitled to obtain real estate loans.

Holders of permanent administrative licenses for a period of no less than one year, and those with scientific professions who have been affiliated with syndicates for a period of at least one year have the right to apply to housing loans.

The Commercial Bank of Syria resumed retail loans, including personal loans and durable goods loans, starting from 15 September, based on the Central Bank of Syria (CBS) decision to resume granting loans under specific controls.

The Commercial Bank of Syria has directed a circular to all its branches to resume granting indirect and direct credit facilities, exclusively for the purpose of financing the agricultural sector, small and medium enterprises, and housing loans.

The banks’ circular also banned the granting of revolving credit facilities and postponed occupational loans, until further instructions are issued in this regard, according to the Commercial Bank of Syria’s official website.