The Interior Ministry has introduced provisions in its Housing Schemes aimed at making it easier for applicants to secure loans from banking institutions, according to Interior Minister Constantinos Ioannou.
Pre-Approval for Grants Before Loan Secured
The revised schemes, which cover mountainous, border, and disadvantaged regions, as well as the Housing Subsidy Scheme for Young Couples and Individuals up to 41 years old, now allow applicants to apply for state grants before finalizing their loan approval.
Responding to a query from Larnaca MP Andreas Apostolou, the minister explained that once an application is reviewed and meets the necessary criteria, successful applicants receive a pre-approval letter. This document can then be used to strengthen their loan application with banks, as it confirms that part of the housing cost will be covered by the state.
Grant Disbursement and Loan Requirements
After securing a loan, beneficiaries must submit the final loan approval within four months of pre-approval. This enables them to proceed with signing the financial assistance agreement and receive an initial 20% payment of the grant, with the remaining amount disbursed in installments.
The minister emphasized that these provisions streamline the loan process while ensuring that financial assistance is only granted to individuals who can cover the remaining housing costs. This approach prevents cases where applicants struggle to acquire housing due to financial limitations or issues in recovering grant funds.
Continuous Evaluation and Improvements
The Interior Ministry remains committed to reviewing and refining the Housing Schemes based on objectives, budget constraints, and the evolving needs of beneficiaries, Ioannou noted. Adjustments are made periodically to enhance efficiency and maximize the impact of financial aid.
Source: Stockwatch.com.cy