Iraq housing loans to launch Sunday with 500 billion dinars allocated

BAGHDAD, Iraq — Iraq's Ministry of Construction, Housing and Municipalities said residential loans under the Housing Fund will open to applicants on Sunday, with 500 billion Iraqi dinars set aside for this year. Ministry spokesman Nabil al-Saffar told the official gazette that the allocated amount can cover only 10,000 loan applications, a limit he linked to the fund's reliance on its own accumulated resources. Applications will be accepted from August 23 for four days and processed simultaneously in Baghdad and other cities. Each province's share will be determined based on poverty rates and population. The loan ceiling is set at 60 million dinars, with repayment terms reaching up to 15 years depending on the property's location, size and the applicant's salary. Al-Saffar said the loans will be offered in two categories for the first time this year: interest-free and interest-bearing at 2 percent. Priority will be given to interest-free loans, with applicants moving to the second category once those funds are exhausted. Applicants will be required to submit only three documents: an identity card, property deed and construction permit. Applicants whose agricultural land was reclassified as residential under Decree No. 320 of 2022 will be excluded from both loan categories. The ministry said no further details were immediately available on plans beyond the current application window.