Regulation on the Maximum Terms for the Provision of Mortgage Loans to the Population

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on 30.06.2020, registration number 3269

Date of entry into force

30.06.2020

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09.08.2025

24.07.2025

28.07.2021

30.06.2020

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Resolution of the Board of the Central Bank of the Republic of Uzbekistan

On approving the Regulation on the Maximum Terms for the Provision of Mortgage Loans to the Population

[Registered by the Ministry of Justice of the Republic of Uzbekistan on June 30, 2020, registration number 3269]

In accordance with the Laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" and "On Mortgage", and the Decree of the President of the Republic of Uzbekistan dated May 13, 2019, No. PF-5715 "On Additional Measures for the Development and Expansion of the Mortgage Credit Market", the Board of the Central Bank of the Republic of Uzbekistan resolves:

1. The Regulation on the Maximum Terms for the Provision of Mortgage Loans to the Population is approved in accordance with the Appendix.

2. This resolution enters into force from the date of its official publication.

Chairman of the Central Bank M. NURMURATOV

Tashkent city,

June 11, 2020,

No. 13/8

APPENDIX

to the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 11, 2020, No. 13/8

REGULATION

On the Maximum Terms for the Provision of Mortgage Loans to the Population

See previous edition.

This Regulation establishes the maximum terms for the provision of mortgage loans to the population by commercial banks, including microfinance banks (hereinafter referred to as "bank" in the text). (amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated July 10, 2025, No. 14/10 (registration number 3658, dated 08.08.2025) — , 09.08.2025, No. 10/25/3658/0713-son)

Chapter 1. General Provisions

1. The following main concepts are used in this Regulation:

payment capacity
— the ability of the borrower (joint borrowers) to timely and fully fulfill their obligations under the credit contract, determined based on the analysis of total income;

fixed interest rate
— an interest rate calculated uniformly for the use of the credit amount for part or the entire term of the loan;

variable interest rate
— an interest rate calculated based on a variable factor for the use of the credit amount for part or the entire term of the loan; See previous edition.
(amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) based on the date of deletion of the fifth paragraph of clause 1 — July 24, 2025 — , 22.07.2025, No. 10/25/3269-1/0640-son)

joint borrower
— natural persons who participate in the monthly payments of the principal amount of the mortgage loan and interest on the loan, and also bear joint and several liability for the mortgage loan.

2. Mortgage loans to the population are provided by banks on the terms of profitability, repayability, security, and term for the following purposes:

individual construction, reconstruction, and repair of housing in compliance with established norms and rules;

purchase of individual housing or an apartment in a multi-apartment building from the new construction or secondary market;

exchange of individual housing or a multi-apartment building from the new construction or secondary market for the borrower's existing housing or a multi-apartment building;

refinancing mortgage loans issued by other banks on favorable terms for customers.

3. A mortgage loan:

is secured by the housing under construction together with the land plot on which it is located;

is secured by the individual housing or apartment in a multi-apartment building purchased with mortgage loan funds and transferred to the ownership of the borrower in the established manner;

is carried out with the pledge of individual housing owned by the borrower and undergoing reconstruction with mortgage loan funds.

Real estate excluded from circulation and subject to confiscation cannot be the subject of a mortgage.
See previous edition.

4. The term, amount, interest rate, and other terms of the mortgage loan are determined based on the agreement between the bank and its client in accordance with the bank's internal credit policy.
   (clause 4 amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) — , 22.07.2025, No. 10/25/3269-1/0640-son. Date of entry into force — July 24, 2025)

5. The following must be observed in the provision of mortgage loans:

the bank must have a legally secured right to claim the existing debt in case of problems arising in mortgage loan payments;

the debtor must be able to pay to repay the interest and principal of the mortgage loan;

the real estate accepted as collateral must be valued based on market prices;

all information required for obtaining and monitoring the loan must be documented in accordance with the bank's credit policy.

6. The formalization of a mortgage loan involves a longer process compared to other loans issued by the bank, and all its stages must be specified in the bank's internal credit policy.

7. The bank's internal credit policy must develop criteria for matching potential borrowers eligible to obtain mortgage loans.

Chapter 2. Protection of Borrowers' Rights and Legitimate Interests

8. When entering into relationships related to credit provision with borrowers, banks must strictly comply with the requirements of the Regulation on Minimum Requirements for the Activity of Commercial Banks in Carrying Out Relations with Consumers of Bank Services (registration number 3030, July 2, 2018).

9. When a borrower applies to a bank for a loan, the bank provides the Information Sheet on the Main Terms of the Mortgage Loan free of charge to citizens wishing to obtain a loan.

10. The bank provides the borrower with an explanation regarding the amount of monthly payments to be made on the mortgage loan and whether the borrower's income is sufficient (or insufficient) to make these payments after analyzing the borrower's income.

11. Before signing the credit contract, the bank must inform the borrower of their right to take the draft of this contract with them for review.

12. The bank must provide the borrower with one original copy of the credit contract on the day it is signed, including the loan repayment schedule.

13. The bank must establish in its internal credit policy the terms for reviewing documents and making decisions after accepting relevant documents for the mortgage loan, and these established terms must be disclosed to everyone.

If the interest rate specified in the credit contract changes after the loan repayment schedule is formalized, the bank must re-formalize the loan repayment schedule and provide it to the borrower.

14. The borrower has the right to independently choose an insurance company to insure the full value of the apartment in a multi-apartment building against loss and damage at their own expense for the benefit of the bank.

Chapter 3. Review of the Application for Obtaining a Mortgage Loan and Decision Making on the Application

15. Banks independently form the list of documents submitted for obtaining a mortgage loan.

16. The application for a loan and all necessary documents specified in the bank's internal credit policy are accepted by bank employees, these documents are studied, and the accuracy of the information indicated in them is verified.

Based on the results of the study and verification, the bank makes a decision to approve or reject this application. In necessary cases, the bank may decide to review this application again.
See previous edition.

17. If the bank makes a decision to refuse to provide a mortgage loan, it must notify the borrower in writing within three days from the date of the decision, clearly indicating the reasons for the refusal to provide the mortgage loan.
    (clause 17 amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) — , 22.07.2025, No. 10/25/3269-1/0640-son. Date of entry into force — July 24, 2025)

18. The borrower has the right to re-apply to the bank for the provision of a mortgage loan after eliminating the shortcomings indicated in the bank's decision.

19. If a positive decision is made to provide a mortgage loan to the borrower, the bank notifies the borrower within three days using the contact methods specified in the application (written, email, SMS message, and other notifications).

20. After the bank makes a positive decision to provide a mortgage loan:

a credit contract is formalized between the bank and the borrower (joint borrowers);

the borrower, at their own expense and within the terms specified in the credit contract, concludes an insurance contract with an insurance company to insure the mortgage object against risks. The insurance contract may provide for the annual payment of the insurance premium;

in the case of purchasing individual housing or an apartment in a multi-apartment building, the sale-purchase contract of the housing is formalized in the established manner;

a mortgage contract is concluded in accordance with the Law of the Republic of Uzbekistan "On Mortgage". The mortgage contract, as well as the mortgage arising by law, is registered in the established manner.

21. The bank's rights regarding the obligation secured by the mortgage in the provision of a mortgage loan may be confirmed by a pledge certificate.

The pledge certificate is drawn up by the borrower and, after the mortgage is registered in the state register, is formalized by the registering authority with the participation of the borrower and the bank and handed over to the bank.

22. The bank's obligation to provide a mortgage loan arises after the borrower submits to the bank an insurance contract and insurance policy for insuring the mortgage object against loss and damage risks, as well as after the mortgage arises. This condition must be stipulated in the credit contract.
    See previous edition.

In this regard, other procedures may be provided for by legislation for mortgage loans issued for the construction and reconstruction of individual housing.
(second paragraph of clause 22 amended by the Order of the Minister of Justice of the Republic of Uzbekistan dated July 28, 2021, No. 16-mh (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724-son)

23. The amount of the mortgage loan issued to the borrower (including funds formed in the borrower's account at the bank) is transferred by the bank to the relevant account in accordance with the contract.

Chapter 4. Analysis of the Borrower's Payment Capacity
See previous edition.
(amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) based on the date of loss of force of clause 24 — July 24, 2025 — , 22.07.2025, No. 10/25/3269-1/0640-son) See previous edition. (amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) based on the date of loss of force of clause 25 — July 24, 2025 — , 22.07.2025, No. 10/25/3269-1/0640-son) See previous edition.

26. Banks must calculate the current debt burden indicator of the borrower when making a decision on granting a loan. The debt burden indicator is calculated in accordance with the macroprudential norms established for Banks and the requirements regarding the maximum values of payments on loans (microloans) issued by them, as set forth in the Regulation on Minimum Requirements for the Activity of Commercial Banks in Carrying Out Relations with Consumers of Bank Services (registration number 3618, April 22, 2025).
    (clause 26 amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) — , 22.07.2025, No. 10/25/3269-1/0640-son. Date of entry into force — July 24, 2025) See previous edition. (amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) based on the date of loss of force of clause 27 — July 24, 2025 — , 22.07.2025, No. 10/25/3269-1/0640-son) See previous edition. (amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) based on the date of loss of force of clause 28 — July 24, 2025 — , 22.07.2025, No. 10/25/3269-1/0640-son) See previous edition. (amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) based on the date of loss of force of clause 29 — July 24, 2025 — , 22.07.2025, No. 10/25/3269-1/0640-son)

Chapter 5. Management of Bank Risks in the Provision of Mortgage Loans

30. The supervisory board of the bank must control the following in managing risks associated with mortgage loans:

that the issued mortgage loans are carried out within the framework of the bank's risk appetite, including within the framework of the risk management strategy and business plan;

that the process of issuing mortgage loans from the bank's management to the specialist issuing the mortgage loan is reflected in the bank's internal credit policy and relevant documents;

that it has an information system covering:

the formation of a database reflecting that the mortgage portfolio risk appetite is within limits;

the opportunity to receive periodic reports;

the accumulation of necessary information for assessing the risk level and efficiency of the mortgage portfolio.

31. To prevent the emergence of risks associated with the provision of mortgage loans, the bank must take into account:

diversification of the mortgage portfolio; geographic concentration of the mortgage portfolio; the level of the debtor's debt burden; the loan-to-value ratio; the level of concentration of mortgage loan insurance and insurance companies; the financial condition of guarantors; the level of maximum expected losses, the share of problematic loans, and derecognized mortgage loans in the mortgage loan portfolio.

32. To reduce the probability of significant losses from interest rate changes, interest rate risk must be hedged by the bank when directing funds attracted at variable interest rates to mortgage loans with fixed interest rates.

33. Banks must calculate factors such as the mismatch between the sources attracted and the terms of mortgage loans, the profitability of the mortgage portfolio, and the impact on the bank's regulatory capital when analyzing the mortgage loan portfolio.

Chapter 6. Requirements for the Valuation of the Mortgage (Collateral) Object
See previous edition.

34. The valuation of the mortgage object is carried out in the manner established by the Law of the Republic of Uzbekistan "On Valuation Activity" and other legislative acts.
    ( clause 34 amended by the Order of the Minister of Justice of the Republic of Uzbekistan dated July 28, 2021, No. 16-mh (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724-son) See previous edition. (amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) based on the date of loss of force of clause 35 — July 24, 2025 — , 22.07.2025, No. 10/25/3269-1/0640-son) See previous edition.

35. If the mortgage object meets the bank's requirements, the bank calculates the loan-to-value ratio of the loan to determine the individual parameters of the mortgage loan. The loan-to-value ratio is calculated in accordance with the macroprudential norms established for Banks and the requirements regarding the maximum values of payments on loans (microloans) issued by them, as set forth in the Regulation on Minimum Requirements for the Activity of Commercial Banks in Carrying Out Relations with Consumers of Bank Services (registration number 3618, April 22, 2025).
    (clause 36 amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) — , 22.07.2025, No. 10/25/3269-1/0640-son. Date of entry into force — July 24, 2025) See previous edition. (amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2025, No. 12/5 (registration number 3269-1, dated 21.07.2025) based on the date of loss of force of clause 37 — July 24, 2025 — , 22.07.2025, No. 10/25/3269-1/0640-son)

Chapter 7. Procedure for Repayment of Mortgage Loans
See previous edition.

38. The procedure for repaying the loan and paying interest on it is carried out on the basis of the mortgage loan contract concluded between the bank and the borrower and the requirements of legislative acts.
    ( clause 38 amended by the Order of the Minister of Justice of the Republic of Uzbekistan dated July 28, 2021, No. 16-mh (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724-son) See previous edition.

39. If the borrower fails to make payments on the principal debt and accrued interest on the mortgage loan within the specified terms, the bank takes measures to recover the loan amount and interest payments based on the credit contract and the requirements of legislative acts.
    ( clause 39 amended by the Order of the Minister of Justice of the Republic of Uzbekistan dated July 28, 2021, No. 16-mh (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724-son)

Chapter 8. Alternative Methods for Resolving Problems Arising from Overdue Debt on Credit Payments

40. If necessary, the bank provides advice and assistance to the borrower in resolving emerging difficulties to avoid the longest and most expensive recovery process.

41. Banks provide recommendations to the consumer for resolving problems, taking into account consumer protection criteria.

42. The principles and main stages of resolving emerging situations consist of:

collecting necessary information to assess the exact level of difficulty of debtors and their readiness to restore regular payments;

active communication and providing explanations about the consequences to help eliminate emerging difficulties with borrowers and prevent delays in loan repayment; identifying and discussing alternative mechanisms for loan repayment (for example, changing loan terms, voluntary sale, or transferring the loan debt to another person with subsequent re-registration of the right to ownership of the housing, etc.).

Chapter 9. Final Provisions

43. Persons guilty of violating the requirements of this Regulation are liable in the manner established by legislation.
    (National Database of Legislative Acts, 30.06.2020, 10/20/3269/1113-son; , 28.07.2021, 10/21/3313/0724-son; 22.07.2025, 10/25/3269-1/0640-son; 09.08.2025, 10/25/3658/0713-son)