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Tuesday, July 16, 2024

The first approvals for the Rent to Installment Scheme have been sent

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<p class=2,092 applications were submitted, of which 1,448 have been initially considered eligible

Letters of approval have begun to be sent to borrowers for participation in the rent-for-installment plan, the President told KYPE of KEDIPES Lambros Papadopoulos, who stated at the same time that the total number of applications that have been submitted for participation in the Plan amounts to 2,092, of which 1,448 have been considered, initially, eligible.

“The flow of approvals has started and the first approval letters (under ten) have already been sent this week to borrowers,” he said and added that it is expected that “within the coming weeks the number of approvals will also increase”

< p>“As we had reported, by June we were expected to reach this final stage,” he noted.

The purpose of the Installment Rent Scheme, which started in early December 2023 and the application period will close on 6 September 2024, unless an extension is granted, is to protect the Main Residence of vulnerable households through full settlement of the Credit Facility which is secured with Insurance on the Main Residence.

Specifically, Mr. Papadopoulos said that until Friday, June 21, 2,092 applications have been submitted, of which “1,448 have been initially considered eligible (for participation in the Scheme), based on the initial criteria that have been set”, such as, among other things, if the applicant is a vulnerable borrower or if he participated in the ESTIA Scheme and was deemed unviable.

He said that based on initial calculations, the eligible households were estimated to be around 3,000, while so far he has applied for approx. 50% (1,448 eligible), of those we “thought would be eligible”.

With reference to the 1,448 applications, which were initially considered eligible, the President of KEDIPES said that “for most of them there is completeness of documents, as well as eligibility, based on the credit arrangement they have, i.e. they were non-performing loans on December 31, 2022 ” and “it is now in the technical control phase, which is the most difficult part of the process”, which concerns the property more.

“Technical controls, assessments and then the arrangements of the encumbrances and encumbrances and in the end the property will be acquired”, he explained.

Regarding the borrowers who have been sent an approval letter, Mr. Papadopoulos told KYPE that “all that remains is the process of acquiring the property” which will take a few weeks.

He said that the initial the goal set was the implementation of 800 applications and he noted that although the initially eligible applications currently amount to 1,448, it is not expected that all of them will be approved.

“We hope that we will exceed the target of 800 applications because we want as many borrowers as possible to enter the Scheme”, said the President of KEDIPES, who called on borrowers who meet the criteria of the rent-for-installment Scheme and have not yet applied, to to do so in the coming weeks.

“The positive of the Plan for the borrowers is that all the loan obligations they have that are related to the object under consideration will be written off and they will be given the opportunity for a new principle, for reintegration into the banking system”, he underlined.

At this point, Mr. Papadopoulos reminded that after five years the borrowers will have the right to repurchase their property and noted that the value repurchase of the property is the value with which KEDIPES will have purchased the property from the banks or credit buyout companies participating in the Plan, i.e. close to 65% of the value of the property.

Finally, Mr. Papadopoulos said that some have exercised their right and submitted an appeal to the Appeals Committee to reject their application.

source: KYPE

Source: 24h.com.cy

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