Rural mortgage program in Russia will resume in 2024

The Ministry of Agriculture of the Russian Federation expects to resume the rural mortgage program in 2024. It is working to resume preferential lending to the agricultural sector by the end of 2023. Minister of Agriculture Dmitry Patrushev announced this today, September 6, during a joint meeting of the State Duma committees on control and agricultural issues.

Authorized banks temporarily suspended the issuance of new mortgage loans under the Rural Mortgage program from August 25 after the Central Bank raised the key rate to 12% per annum.

As Bashinform News Agency previously wrote, the rural mortgage project was launched in 2020 as one of the main ones in the “Comprehensive Development of Rural Territories” program. It was prevalent, especially in Bashkiria, which constantly led to volumes of preferential lending. In 2022, the “rural mortgage” was announced as an open-ended program, and in July 2023, the maximum loan was increased to 6 million rubles. The rural mortgage rate did not exceed 3%. In the first six months of 2023, loans totaling almost 1.2 billion rubles were issued under the preferential housing purchase program.

Author: Laysan Zakirova