Credit & Lending Decision Projecet (Comparison Between Real State Loans In Syria 2008)

Credit & Lending Decision– Project

Title of the Report: Real Estate Loans

Professor: MR. Mohammed Joum'aa

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Project done by:

Ahmad Al-uzom

Al'aa Sakkal

Hassan Kahoajie

Date: 22/1/2009

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Most of the economists especially the bankers here in Syria must know that Syria was having more than 8 private banks and at lest one public bank in addition to the Central bank of Syria and of course Syria before 1963 when the Al-B'aath party took the authorities and the leadership here in Syria was having at this time an advanced and developed financial system including the three types of the business organizations "Sole propetiorship, Partnership and Corporations" and an advanced financial or securities exchange market.

After 1963 when Al-B'aath party came to the public authority in Syria a new rules and decree-laws was made by the authorities at this time one of them was the nationalization which means converting most of the economical sectors from private ownership to the public ownership and one of the sectors was the banking sectors so from this time 1963 all the private banks was owned and runner by the public "government" sector and this scenario still until 2001 when President Bashar Al-Asad elected to be the leader of Syria, Mr. President published ( Law No. 28/2001, Private Banks Establishment in Syria ) and (Law No. 35/2005, Islamic Private Banks Establishment in Syria ) which allowed to the private banks to invest in Syria with $30 million required as a beginning capital for the establishment and $100 millions required as a beginning capital for the establishment of the Islamic banks and from 2003 until today we have a mixture of many kind of banks" public, private and Islamic private banks". Until this date 2009 Syria has 6 public banks, 9 private commercial banks and 3 Islamic banks.

The 6 public banks are the following:

1- The Real Estate Bank of Syria.2- Commercial Bank of Syria.

3- The Agricultural Bank of Syria.

4- The Industrial Bank of Syria.

5- The Popular Lending Bank of Syria.

6- The Savings Bank of Syria.

The 9 commercial private banks are the following:

1- Bank Audi-Syria.2- Byblos Bank.

3- Bank of Syria & Gulf.

4- The International Bank for commerce and financing.

5- Bank of Syria and emigrant.

6- The Arabi Bank.

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7- Banque Bemo Saudi Fransi.

8- Bank of Gordan-Syria.

9- The France Bank-Syria.

The 3 Islamic private banks are the following:

1- Islamic International Bank Of Syria.2- Bank Of Cham.

3- The Islamic Barakeh Bank.

The basic job of all the banks is to provide the loans to customers or the borrowers "that represents the asset for the banks and the original source of the profit for them" with an interest rate that is higher than the interest rate that the banks are liable and must pay for theirdepositors,these loans are various among commercial & industrial loans, agricultural loans, financial institution loans, individual or personal loans, lease financing receivable loans, term loans, working capital loans and finally real estate loans.

Most of the Banks here in Syria provide different types of real estate loans for businesses and individuals including:

1- Loans for rebuldings, reparation, restoration and painting the homes.2- Loans for constructing the homes.

3- Loans for purchasing heaters that works by the solar system and elevators loans.

4- Housing loans or Loans to buy a home.

Home purchasing loans will be the title for this research and the comparison will be among the public banks, commercial private banks and the Islamic private banks.

*The Public banks:

Real Estate Bank will be the targeted bank for this sector because it's the only public bank that interested in the real estate loans and it provides Home purchasing loans while the other public banks don't interested in the real estate loans except the commercial bank that intend to provide the Home purchasing loan but until now the bank doesn't provide any real estate loan except Loans for purchasing heaters, elevators and painting loans, maybe in 2009 it plans to provide Home purchasing loans.

Real Estate Bank was Created in 1966; the Real Estate Bank of Syria is a public establishment, and already counts 20 branches, including 3 in Damascus. With over 2000 Point of Sales over the country, Real Estate Bank has the widest network of branches covering all governorates, major cities, and plans to further develop its network in the close future. The Bank aims at extending support to construction activities all over Syria, and to be a facilitator for touristic, industrial, commercial but also individual projects in Syria. The Bank also promotes the setting up of cooperative societies and corporations whose objective is to build property, mainly for housing and working purposes. Real Estate Bank plays a

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major role in long term financing of Syria, offering credit lines up to 15 years. The Bank also grants loans to individuals, particularly those with a low to middle income, for the construction of homes, commercial, scientific and professional offices. The Bank has been pioneer in introducing ATM and use of Visa and MasterCard into Syria and counts more than 70 ATMs machines all over the country. The bank insures its clients of a high level of banking services by adopting the latest computerized accounting equipment, including the world-acknowledged Phoenix banking system. In 2007, The Real Estate Bank of Syria will extend its services to become a Universal Bank covering a large range of financial services including Commercial Banking, Investment Banking, Corporate Finance, and Retail Banking, and accepting deposits, encouraging saving and giving guarantees. The bank is committed to open up to foreign investors and will start to deal with foreign currencies.

Data about the bank:

Consumer Loan INDIVIDUAL HOUSING LOANGuidelines To buy a finished apartment or houseTargeted Customers

Only for the mature Syrian citizens who has the Syrian Nationality and the Syrian Palestinian citizens from any religion.

Loans period and Interest Rate

-Loans for 15 years required 9.5% interest rate.-Loans for 10 years required 9% interest rate.-Loans for 5 years required 8.5% interest rate.

Amount Of Loans and period

-The minimum period of loan is 5 years and the maximum loan period is 15 years.- The maximum credit line for this type of loan by S.P is 1200000.- The maximum credit line for this type of loan as a percentage is 75% of the house value that is valued by a real estate expert seller.-The minimum amount that the customer must pay to get the loan is 25% or 300000 S.P of the required loan.

Required reserve and Repayment arrangement

Each borrower much has or leave a deposit at the real estate bank without an interest or the borrower can pay 5% of the loan value to the bank that the bank can cut it from the loan that the borrower will get it's.Time of the deposit: The amount of the loan:-Three months. -200%.-Six Months. -300%.-Nine months. -400%.-Twelve months. -500%.-Example: to get a loan amount by S.P 600000, borrower must make a deposit of 300000 S.P without interest or by paid 30000 S.P to the bank from his loan.-The Repayments will be equally distributed by each month and will contain the interest payments+the principal amount.-The required net salary or net income each month must recover twice and a half of the required monthly payment or in simple English the salary or the net income

Company Data:

Real Estate Bank of Syria Dr. Mulham DiboGeneral Manager Yousef al Azmeh sqr PO Box 2337, [email protected]. +963 11 -2456777Fax. +963 11 -2237938

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mailto:[email protected]

http://www.ebizguides.com/guides/sponsors/www.reales1tatebank-sy.com

at least 40% of its must the required loan monthly payment.-Example of a loan for 15 years with 9.5 interest rate that has a 180 payments and a loan amount is 1200000 S.P must has the following:-Minimum required Salary is 31326.74 S.P.-Monthly payment is 12530.7 S.P.-Number of Payments is 180 payments.-Total of payments is 2255525.31 S.P.-Sum of interest Payments are 1055525.31 S.P.

The Bank Lending policy and Loan procedures

1- Each bank before he gives the loan approval to the customers, the banks should take some steps to secure the loan and these procedures it taken by the credit analysis department:-

2- The Customer should fill the contract report that is issued by the bank and this report has general information about the borrower like:* Customer Name. * Address. * Telephone. * military Service Religion. *Nationality, Age, Gender, Kind of the required real estate loan, The customer condition with bank if he is a new client or he is an old client for the bank. His credit history with the bank, the bank employees who is responsible for this loan, signature of both sides the client and the employee.

3-analyzing the customer entity and his intention to repay the required payments & the required documents and conditions from the targeted customer are the following :

1- photocopy for his ID and Passport.2- The customer should finish his military service and he must make a

photocopy of his military service book.

3- Make a photocopy of the customer family book if he is married.

4- Make a photocopy of the customer civil record and a document of his living place with the signet of Al-Moukhtar.

5- The customer's "electricity invoices, water invoices, Phone and Mobile invoices" for the last year.

6- Paper from the court that he or she ever goes to the prison.

7- Report and a document of his current and the previous bank liabilities" loans if he had taken a loan before or now.

4-The bank makes a visit site for the house or the apartment and check it's situation by:

1- The bank should send a real estate expert or house seller to evaluate and guess the real value of the required house.

2- The lender should bring form the real estate commission a report about the apartments and about the building situation from real estate commission and a building design or the area stripy and design if the apartment from the municipality area.

3- If the apartment belongs to the temporary record the client should bring the construction licensing from the municipality , a report of the building situation that approves the apartment doest have any contrary or conflict, architecture design stamped from the temporary record department, the location design in general.

4- The apartment contract that shows the owner or the owners of the

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apartment.

5- If the apartments belong to the municipality the previous reports and documents should be brought from the municipality department.

5-The credit analysis department should check the financial condition of the borrower by asking him the following documents:

1- If the borrower income will be from his job salary he should brings a report of his contract with his public company and a report of his insurances and if he is working in a private sector he should brings a report of his contract with private company and stamped it from formal authorities like " ministry of business and workers".

2- If the borrower income will be from his shop or his own company he should bring the commercial report from the commercial room or he should bring the rent contract of the commercial estate after the borrower brings the ownership records the borrow should approves his income by preparing his financial statements for the last three years stamped by a Syrian public accountant plus to that the borrower should bring a list of his customers and his suppliers with their names, phones numbers, addresses and a list of his goods.

3- After the bank has secured his loan by checking the borrow income and his ability to pay the required monthly payments the bank should take a collateral to secure his money and this collateral will be the apartment that will owns to the bank.

4- If the Customer does not have the required amount of the monthly payments like if the 40% of his income cover the monthly income the borrower can mortgage some of his commercial or real estate property to the bank and the borrower should brings a report of his report from the responsible formal authorities and he should bring the ownership contract of his property and it must be stamped from the required authorities and if he doesn’t own any property and his 40% of his income is not covered the requirements monthly loan payment the borrower can bring a guarantor and this guarantor should have a property and this property will be mortgaged to the bank and if the borrower won't pay the required payment the guarantor should pay instead of him and if the guarantor refused to pay the bank will liquidate the guarantor mortgaged properties by selling them in the auction and the bank will take his rest of principal and interest payments and he will refund the rest to the guarantor.

6- The real estate bank will send a representative of them to the borrower workplace, commercial shop or foundation, living place "the apartment", mortgaged properties, the guarantor mortgaged properties to check and confirm the credibility of the all previous information.

7- After the all previous procedures were done the loan officer will sign the loan agreement with borrower and his guarantor if there will be a guarantor.

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*The private Commercial Banks:

*Banque Bemo Saudi Fransi:

*Brief Summary about the Bank:

BBSF is the trading name for Banque Bemo Saudi Fransi, a bank recognized for its highest international standards with Syrian roots. It is a Syrian private joint stock company and it was registered in the Commercial Register of Damascus under Law article 13901 to become the first operational private bank to be established in Syria in over 40 years.

*Board of the Directors:

Board of Directors

Name Position

Mr. Abdulrahman Jawa Chairman

Mr. Riad Obegi Vice Chairman & CEO

Dr. Abdulrahman Attar Member

Mr. Bertrand Viriot Member

Mr. Hazem Aswad Member

Mr. Henry Obegi Member

Mr. Jean Marion Member

Mr. Naji Rabbath Member

Mr. Yordan Obegi Member

Senior Deputy General Manager: Mr. Nabil Hchaime

Deputy General Manager Mr. Chabane Francis

/Head of Retail Division: Mr. Nasir Tamimi

Deputy General Manager: Mr. Pierre Ducos

External Auditors: ERNST & YOUNG

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Consumer Loan INDIVIDUAL HOUSING LOANGuidelines To buy a finished apartment or house

Targeted Customers Only for the mature Syrian citizens who has the Syrian Nationality from any religion.

Customer Age-Minimum required age is 25 years.-Maximum age for the customer at the end of the loan payments should not be up of 55 years.


Loans interest rate are fixed for all the periods and it doesn't change "10%"-Loans from 1 to 5 years required 8.75% interest rate-The loan period will be from 1 to 20 years.-Loans from 5 to 10 years required 10% interest rate.-Loans from 10 to 15 years required 9.25% interest rate


- The maximum credit line for this type of loan by S.P is 2500000.- The maximum credit line for this type of loan as a percentage is 60%of the house value that is valued by a real estate expert seller.-The minimum amount that the customer must pay to get the loan is 40% or 1000000 S.P of the required loan.-The interest rate will be changed according to the Central bank interest rate.

Required reserve and Repayment arrangements

-The interest rate will be a decreasing interest rate and it counted according to the balance.-The Repayments will be equally distributed by each month and will contain the interest payments + the principal amount.-The required net salary or net income each month must equal four times of the required monthly payment or in simple English the salary or the net income at least 25% of its amount will be used to pay the required loan monthly payment.-Example of a loan for 10 years with 9% interest rate that has a 120 payments and a loan amount is 250000 S.P must has the following:-Minimum required Salary is 1300000 S.P.-Monthly payment is 32850 S.P.-Number of Payments is 180 payments.-Total of payments is 3942000 S.P.-Sum of interest Payments are 1442000S.P.


1-Each bank before he gives the loan approval to the customers, the banks should take some steps to secure the loan and these procedures it taken by the credit analysis department:-

2-The Customer should fill the contract report that is issued by the bank and this report has general information about the borrower like:* Customer Name. * Address. * Telephone. * military Service Religion. *Nationality, Age, Gender, Kind of the required real estate loan, The customer condition with bank if he is a new client or he is an old client for the bank. His credit history with the bank, the bank employees who is responsible for this loan, signature of both sides the client and the employee.


1- photocopy for his ID and Passport.2- The customer should finish his military service and he must

make a photocopy of his military service book.


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5- The customer's "electricity invoices, water invoices, Phone and Mobile invoices" for the last 2 years.




1-The bank should send a real estate expert or house seller to evaluate and guess the real value of the required house.

2-The lender should bring form the real estate commission a report about the apartments and about the building situation from real estate commission and the square of the apartment should be registered in this report.

3-If the apartment belongs to the temporary record the client should bring the construction licensing from the municipality , a report of the building situation that approves the apartment doest have any contrary or conflict, architecture design stamped from the temporary record department, the location design in general.

4-The apartment contract that shows the owner or the owners of the apartment.

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1- 1-If the borrower income will be from his job salary he should brings a report of his contract with his public company and a report of his insurances and if he is working in a private sector he should brings a report of his contract with private company and stamped it from formal authorities like " ministry of business and workers".

2- If the borrower income will be from his shop or his own company he should bring the commercial report from the commercial room or he should bring the rent contract of the commercial estate after the borrower brings the ownership records the borrower should approves his income by preparing his financial statements for the last two years and it's not necessary to stamped them by a Syrian public accountant plus to that , the borrower should bring a list of his customers and his suppliers with their names, phones numbers, addresses and a list of his goods.

3- After the bank has secured his loan by checking the borrower income and his ability to pay the required monthly payments the bank should take collateral to secure his money and this

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collateral will be the apartment that will owns to the bank.

4- If the Customer does not have the required amount of the monthly payments like if the 25% of his income cover the monthly income the borrower can mortgage some of his commercial or real estate property to the bank and the borrower should brings a report of his property from the responsible formal authorities and he should bring the ownership contract of his property and it must be stamped from the required authorities and if he doesn’t own any property and his 25%of his income is not covered the requirements monthly loan payment the borrower can bring a guarantor and this guarantor should have a property and this property will be mortgaged to the bank and if the borrower won't pay the required payment the guarantor should pay instead of him and if the guarantor refused to pay, the bank will liquidate the guarantor mortgaged properties by selling them in the auction and the bank will take his rest of principal and interest payments and he will refund the rest to the guarantor and if the sold apartment money don't cover all the rest payments the customer is liable for his rest payments by his personal property.



8-This loan agreements will be sent to the Central Bank of Syria to protect the bank right and to confirm the Central Bank of his loan operations and a photocopy of this loan agreement will be sent to the bank law representative" The bank lawyer".

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*Syrian Gulf Bank:

* Brief summary about the bank:

Syria Gulf Bank was licensed to operate as a private commercial bank by the Council of Ministers on 13th April 2006 through decree no 32. SGB is presently under establishment and should be operative beginning 2007.

-The founders of this bank are divided in to two groups:

-Syrian founders (25%) are Abdul-Wahab Sawan (5%),Kareem Mahran Khawanda (5%), Saadalla Ibrahim Massouh (5%), Muhammad Salim Abdulkader Kailani (5%), Abdul-Ghani Abdul-Rahman Al Attar (3%) and Costi Farid Chehlaoui (2%). - Foreign founders (49%) are United Gulf Bank (UGB), Bahrain (24%), Al Fotouh Investment Co, Kuwait (11%), Global Investment House, Kuwait (7%) and First National Bank, Lebanon (7%).

-The Board of Directors:

Consumer Loan INDIVIDUAL HOUSING LOANGuidelines To buy a finished apartment or house

Targeted Customers

Only for the mature Syrian citizens who has the Syrian Nationality and the Syrian Palestinian citizens from any religion.-In Some Situations the bank accepts some foreign customers who are living here in Syria and the Syrian government accepts them as residents like Arabs and the embassy employees.

Customer Age-Minimum required age is21 years.-Maximum age for the customer at the end of the loan payments should not be up of 60 years.

Customers Who Can Benefit from the Loan

-Public sector employees if their foundation wants to transfer their salaries to the bank.-Private corporations, Insurance companies, Universities, Industrial companies' employees if their organizations wanted to transform their salaries to the bank account.-The perfect class of the employees in general likes " Doctors, Accountants, Engineers...." or businesses owners.

Loans period and Interest Rate - Loans interest rate are fixed for all the periods and it doesn't change "10%"-Loans for 5 years required 10% interest rate.-Loans for 10 years required 10% interest rate.

TitleName

ChairmanMasaud Mahmoud Jawhar Hayat

Vice ChairmanOmar Mahmoud Al Qouqa

Board memberYounis Mohamad Brouche

Board memberImad Rizk Allah Al Fata

Board memberAbdulWahab Zahid Sawan

Board memberKarim Mehran Khawanda

Board memberAbdul Ghani Abdul Rahman Attar

Board memberIssam Khair Allah Anbouba

Board memberMoh’d Ayman Arabi Kassab Bashi

General ManagerIssam Nashawati

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-Loans for 15 years required 10%interst rate.

-In addition to the interest rate there is a 1% is just paid at once time at the beginning of the loan as a commission.


- The maximum credit line for this type of loan by S.P is 10 million.-The minimum credit type for this type of loan by S.P is 500000.- The maximum credit line for this type of loan as a percentage is 70%of the house value that is valued by a real estate expert seller.-The minimum amount that the customer must pay to get the loan is 30% of the required loan.-The interest rate will be changed according to the Central bank interest rate.

Required reserve and Repayment arrangements

-The interest rate will be a decreasing interest rate and it counted according to the balance.-The Repayments will be equally distributed by each month and will contain the interest payments + the principal amount.-The required net salary or net income each month must equal three times of the required monthly payment or in simple English the salary or the net income at least 30% of its amount will be used to pay the required loan monthly payment.



2-The Customer should fill the contract report that is issued by the bank and this report has general information about the borrower like:* Customer Name. * Address. * Telephone. * military Service Religion. *Nationality, Age, Gender, Kind of the required real estate loan, The customer condition with bank if he is a new client or he is an old client for the bank. His credit history with the bank, the bank employees who is responsible for this loan , signature of both sides the client and the employee.






5- The customer's " electricity invoices, water invoices, Phone and Mobile invoices" for the last 2 years.



8- A detailed report of his income from his organization and this report must be stamped from the organization insurance company for private sector and from the sociable insurance commission.

9- A registration Report from his business union or from his

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ministry.



2-The borrower should bring form the real estate commission a report about the apartments and about the building situation from real estate commission and the square of the apartment should be registered in this report.

3-The building license from the real estate commission

4-If the apartment belongs to the temporary record the client should bring the construction licensing from the municipality , a report of the building situation that approves the apartment doest have any contrary or conflict, architecture design stamped from the temporary record department, the location design in general.


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5- 1-If the borrower income will be from his job salary he should brings a report of his contract with his public company and a report of his insurances and if he is working in a private sector he should brings a report of his contract with private company and stamped it from formal authorities like " ministry of business and workers".


7- After the bank has secured his loan by checking the borrower income and his ability to pay the required monthly payments the bank should take collateral to secure his money and this collateral will be the apartment that will owns to the bank.

8- If the Customer does not have the required amount of the monthly payments like if the 30%of his income cover the monthly income the borrower can mortgage some of his commercial or real estate property to the bank and the borrower should brings a report of his property from the responsible formal authorities and he should bring the ownership contract of his property and it must be stamped from the required authorities and if he doesn’t own any property and his 25%of his income is not covered the requirements monthly loan payment the borrower can bring a guarantor and this guarantor should have a property and this property will be mortgaged to the bank and if the borrower won't pay the required payment the guarantor should pay

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instead of him and if the guarantor refused to pay, the bank will liquidate the guarantor mortgaged properties by selling them in the auction and the bank will take his rest of principal and interest payments and he will refund the rest to the guarantor and if the sold apartment money don't cover all the rest payments the customer is liable for his rest payments by his personal property.




*Byblos Bank " Syria":

*Brief Summary about the bank:

Founded in 2005, Byblos Bank Syria S.A. is the sixth private bank to set up operations in Syria following legislation to reform and modernize the banking sector. Byblos Bank Syria S.A. is owned and managed 41.5% by Byblos Bank S.A.L. (Lebanon). A 51% stake was acquired by Syrian investor and The OPEC (Organization of Petroleum Exporting Companies) Fund for International Development has joined in the capital with 7.5%.

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*Board of Directors and work team:

Name Position

Mr. Semaan F. Bassil Chairman

Mr. Alain C. Tohmé Vice Chairman

Dr. François S. Bassil Director

Mr. Mohammad Al Mortada Mohammad Al Dandashi Director

Mr. Samir A. Hassan Director

Mr. Nader M. Kalai Director

Mr. Andre Abou Hamad Director

Mr. OPEC Fund for International Development Director

Mr. El Mou’taz W. Al Sawwaf Director

Mr. Nadim F. Ghantous CEO

Mr. Walid Abdel Nour Deputy General Manager

Mr. Pierre Abi Aad Senior Relationship Manager

Mr. Antoine Abboud Advisor to the Chairman

Guidelines To buy a finished apartment or houseProduct Brand Name "Bytie W ana Herah Fieh" ,"I am a free and it' my house"Bank Logo "Boukra Ahla", "Tomorrow is better".Apartment Location Damascus, Aleppo, Homs.

Targeted Customers Only for the mature Syrian citizens who has the Syrian Nationality from any religion and in some situations the Syrian emigrants.

Customer Age-Minimum required age is 25 years.-Maximum age for the customer at the end of the loan payments should not be up of 55 years.


Loans interest rate are fixed for all the periods and it doesn't change "12%"-Loans for 15 years required 12% interest rate.-Loans for 10 years required 12%nterst rate.-Loans for 15 years required 12% interest rate. – There was an offer "Loans for 30 years required 11.5% interest rate".


- The maximum credit line for this type of loan by S.P is 20 millions.- The maximum credit line for this type of loan as a percentage is 50%of the house value that is valued by a real estate expert seller.-The minimum credit line for this type of loan by S.P is 1 million.-The minimum amount that the customer must pay to get the loan is 50% of the required loan.-The interest rate will be changed according to the Central bank interest rate.-The customer can put of deposit of a sum of money to benefit from a bank offer that the customer can just pay 30% of the required loan as a first payment but this deposit will stay in the bank until the sum will be 30% of the required loan.

Required reserve and -The interest rate will be a decreasing interest rate and it counted according to the

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Repayment arrangements

balance.-The Repayments will be equally distributed by each month and will contain the interest payments + the principal amount.-The required net salary or net income each month must equal three times of the required monthly payment or in simple English the salary or the net income at least 30%of its amount will be used to pay the required loan monthly payment. -The bank will prefer un married people by required a little percentage of the borrower income that it's part will be paid to cover the monthly payments for single persons the percent is 30% of income, for married people percentage will be 33% of income.



2-The Customer should fill the contract report that is issued by the bank and this report has general information about the borrower like:* Customer Name. * Address. * Telephone. * military Service Religion. *Nationality, Age, Gender, Kind of the required real estate loan, The customer condition with bank if he is a new client or he is an old client for the bank. His credit history with the bank, the bank employees who is responsible for this loan , signature of both sides the client and the employee.






5- The customer's " electricity invoices, water invoices, Phone and Mobile invoices" for the last 3 months.



8- A detailed report of his income from his organization and this report must be stamped from the organization insurance company for private sector and from the sociable insurance commission



2-The borrower should bring form the real estate commission a report about the apartments and about the building situation from real estate commission

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and the square of the apartment should be registered in this report.

3-Borrower should bring the requirement documents that the apartment belongs to its real estate sector " Green Tabo, Temporary Record, Military Housing".


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1- If the borrower income will be from his job salary he should brings a report of his contract with his public company and a report of his insurances and if he is working in a private sector he should brings a report of his contract with private company and stamped it from formal authorities like " ministry of business and workers".


3- After the bank has secured his loan by checking the borrower income and his ability to pay the required monthly payments the bank should take collateral to secure his money and this collateral will be the purchased apartment that will owns to the bank.

4- If the Customer does not have the required amount of the monthly payments like if the 30% of his income cover the monthly income the borrower can mortgage some of his commercial or real estate property to the bank and the borrower should brings a report of his property from the responsible formal authorities and he should bring the ownership contract of his property and it must be stamped from the required authorities and if he doesn’t own any property and his 30% of his income is not covered the requirements monthly loan payment the borrower can benefit from his wife income if she is working and both of the couple will be legally responsible to pay the housing monthly loan payments and if the wife is not working the husband can benefit from her property and she will be his guarantor in this situation.

6- The real estate bank will send a representative of them to the borrower workplace, commercial shop or foundation, living place "the apartment",

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mortgaged properties, the guarantor mortgaged properties to check and confirm the credibility of the all previous information.



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Credit & Lending Decision Projecet (Comparison Between Real State Loans In Syria 2008)

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Transcript of Credit & Lending Decision Projecet (Comparison Between Real State Loans In Syria 2008)