Families that hold maternity capital certificates may use the funds to improve their homes without visiting client services of the Russian Pension Fund. For public convenience, the PFR has signed information exchange agreements with 108 banks, so that parents could use the funds in a faster and easier manner. Interaction has been established with certain offices of Sberbank, VTB, Gazprombank and many other credit institutions.
As a bank issues a loan for buying or building a house, an application can be filed for using maternity capital funds to pay the principal debt on the loan or the down payment when obtaining a loan. Instead of visiting both the bank and the Pension Fund, a family can contact a bank only. Banks direct the applications and respective documents to the PFR online, which expedites the procedure.
This year, one in four families that decided to spend maternity capital on a better home used the convenient method of the submission of application for using the funds via the bank, which it asked for a loan.
Please note that the funds could be spent on the improvement of living conditions after the child that gives the right to maternity capital turns three. The only exception is made for the down payment on a mortgage or the repayment of loans for buying or building a home. In this case, the funds could be used as soon as the child is born or adopted.