Small Project Loans
- Region Trade Bank gives loans to finance small projects
- This type of lending is subject to the regulations and conditions of the Central Bank of Iraq.
- The maximum limit allowed for one loan is 50,000,000 Iraqi Dinars (Fifty million Iraqi Dinars).
- The accepted guarantee in Kurdistan Region is the property only, and it must be fully owned (Tabu) and is not mortgaged to any party, and can be seized and sold if the borrower breaches the conditions.
- In Baghdad and Kirkuk, government employees are guaranteed bail if the required loan is less than 18 million Iraqi Dinars. From 18 to 50 million, the property must be submitted as mortgage against the loan amount. The property must be fully owned by applicant (Tabu) and not mortgaged to any party. Seizure can be made and implemented if the borrower breaks the loan contract.
- The interest rate is 5.5% annually, collected on monthly payments in a decreasing manner.
- The loan is granted to afford the opportunity of establishing a modern project or to expand an existing one and to reduce unemployment in the youth sector.
- Most projects are eligible for consideration (commercial, agricultural, tourist, industrial, service, health, educational).
- The kinds of Projects that are not subject to applying the regulations and conditions: personal loan (cash), taxi, completion of house construction.
- Iraqi Personal documents related to the project owner.
- Title deed (Tabu), documents of the owner of property (in case he is not the owner of the project).
- Application to acknowledge no objection to the seizure and mortgage of the property.
- Project lease.
- Feasibility study.
- Open a bank account.
- The fees of examining the property made by the Inspection Committee at the bank to register the property.
Bank committees conduct two field visits (project site, foreclosure site) for the purpose of evaluating and verifying information provided to the bank with periodic updates through inspection (every 6 months, for example).
Procedures for approval:
After studying the project submitted to the loan and studying the surrounding circumstances, it is approved by the credit committee appointed by the bank.
The client completes the mortgage procedures and submits a bond to the Region Trade Bank until the approval value is requested plus 20%, to provide a guarantee check with the approval value.
The mortgage property must be totally owned by the applicant and a purchase and the purchase contract (for residential complexes) or any property not subject to legal enforcement is not accepted.