NAK Initiative: Primary producers and agricultural private entrepreneurs can get housing loans on more favorable terms

The National Chamber of Agriculture (NAK) strongly supports the government’s measures aimed at improving the quality of life of people living in rural areas. Important elements of this are programs to help create homes.

The use of loans provided with state interest subsidies may encounter difficulties for those active in the agricultural sector due to special taxation

According to experience, some banks participating in the disbursement of housing loans did not accept the income of primary agricultural producers for applying for a housing loan, especially in the case when the applicant for the housing loan is a primary agricultural producer who operates as a member of a family farm.

Primary producers can also access the preferential loan

In order to ensure that private individuals operating in the agricultural sector are not disadvantaged in terms of state-subsidized housing purchases, the NAK initiated with the Government and the Banking Association that the income determined based on the income from primary agricultural production activities be uniformly accepted by financial institutions when assessing housing loans. The NAK proposed that the option set out in Section 50/F of Act LXXXIV of 1998 on Family Support should also be ensured in the case of the 3% fixed interest Home Start program, according to which a flat-rate taxpayer agricultural primary producer can use 50 percent of his income as his income when applying for a loan. The government supported the amendments proposed by the NAK, so that in the future flat-rate taxpayer agricultural sole proprietors and primary producers can apply for a fixed 3% interest home loan with more favorable terms.

NAK