The first Russian residential housing contractor lending transaction using an escrow account was held in Kazan with the participation of the Guarantee Fund of the Republic of Tatarstan

The first Russian residential housing contractor lending transaction using an escrow account was held in Kazan with the participation of the Guarantee Fund of the Republic of Tatarstan, which provided the company with a guarantee in the amount of 50% of the loan amount, thanks to which the contractor began construction of a private house.

As part of the new financing mechanism for the construction of individual residential buildings, the DOM.RF Bank approved a credit line to an entrepreneur from Tatarstan in the amount of 20 million rubles at a special rate of less than 6% per annum, under the guarantee of the Guarantee Fund of the Republic of Tatarstan.

Let us recall that the Guarantee Fund of the Republic of Tatarstan, subordinated to the Ministry of Economy of the Republic of Tatarstan, within the framework of the national project "Small and medium-sized entrepreneurship and support for individual entrepreneurial initiative" provides guarantees for the obligations of entrepreneurs of the republic who, according to the conclusion of financial organizations, have a stable financial position, but do not have sufficient collateral to obtain debt financing.

The Guarantee Fund of the Republic of Tatarstan implements a number of guarantee products for entrepreneurs operating in rural areas, in the field of manufacturing, construction, services, trade (including on Internet sites), for exporters and residents of industrial and trading parks.

The current conditions for the provision of a guarantee of the Guarantee Fund of the Republic of Tatarstan are:

•        The maximum size of the guarantee is up to 50% of the loan amount;

•        The maximum amount of the guarantee is up to 70 million rubles.;

•        Commission fee – from 0.5% -1% per annum.

It should be noted that you can apply, check your business for compliance with the conditions for obtaining warranty support, learn more about preferential programs on the website of the Guarantee Fund of the Republic of Tatarstan, as well as by phone.: +7(843)293-16-94, +7(903)061-40-18.

For reference: in multi-apartment construction, project financing and escrow accounts began to operate in 2019. Such a settlement scheme should protect the buyer's funds in case of problems with the construction company. Until the moment of delivery of the house, the funds are stored in a special account, the contractor receives them only after the building is put into operation. The construction is carried out on a loan received from the Bank.