State Mortgage Subsidy Programme

State Mortgage Subsidy Programme

Starting from July 1, 2020 was launched State program of mortgage subsidization, which aims to support development sector in the country. JSC Isbank Georgia has joined the mentioned program and offers a mortgage loan in GEL at an interest rate starting from 11.2%, effective 12.07% to be at maximum term of 20 years. Offer considers life insurance as a gift.

Under the program, the state will subsidize the interest rates for mortgage loans up to 4% for a period of 5 years.

Terms and conditions:

  • The loan must be issued in the period 01.07.2020 - 31.12.2020;
  • Maximum amount of loan per borrower - 200,000 GEL;
  • Consumer contribution should be at least 10%;
  • Subsidy term - 5 years;
  • Loan currency – GEL;
  • The loan may be secured by the purchase;  
  • The apartment must be purchased from a development company.



  • The client utilizes GEL 100,000  mortgage loan at the variable rate (linked to the refinancing rate)  of 11.2%  for 60 months period.  The refinancing rate at the time of issuance is 8.25%, and the spread (the fixed portion set by the bank on the refinancing rate of the NBG ) is -2.95%. In this case the state subsidy will be equal to 4%. Considering all the components, we will get the following: 8.25% (refinancing rate) - (8.25% -4.25%) (state subsidy component formula) + 2.95% (bank spread) = 7.2% (annual interest rate to be paid by the client) instead of 11.2%.
  • In case the refinancing rate decreases to 6%, the amount of state co-financing will be 1.75% according to the following formula: 6% (refinancing rate) - (6% -4.25%) (state subsidy component formula) + 2.95% (bank spread) = 7.2% (annual interest rate payable by the client) instead of 8.95%.
  • In case the refinancing rate equals to 5%, the Agency will suspend subsidy and it will be resumed only when the refinancing rate increases above 5%.
  • In case the clients applies for a 100, 000GEL loan for the period of 180 month its interest rate is 11.2%, the state subsidy will be 4% valid for 5 years. Accordingly, the borrower will pay monthly 835 GEL instead of 1 149 GEL for 5 years.