Dmitry Medvedev signed a decree that allows the use of materkapital funds to repay loans, regardless of the period when they were taken.
What is womb capital
The maternity (family) capital program is a form of state support for Russian families in which from January 1, 2007 to December 31, 2021, a second, third or subsequent child was born or adopted. The amount of the capital has not changed since 2015 and is 453,026 rubles. Maternity capital is paid once
In accordance with the current legislation, the following persons have the right to receive maternity capital:
- a woman who has citizenship of the Russian Federation, starting from January 1, 2007, who has given birth (adopted) a second child or subsequent children;
- a man with Russian citizenship who is the sole adoptive parent of the second or subsequent children;
- the father (adoptive parent) of the child, regardless of whether he is a citizen of the Russian Federation, in the event of termination of the right to additional measures of state support for a woman who has given birth or adopted children - due to her death, deprivation of parental rights in relation to the child or the commission of a deliberate crime against her children;
- a minor child (children in equal shares) or a full-time student until he reaches the age of 23 - upon termination of the right to additional measures of state support for the father (adoptive parent) or a woman who is the only parent.
According to statistics, over 11 years, 8.55 million families have used the maternity capital program, of which 5.1 million families have already fully used the funds allocated to them.
Innovations
According to the federal law "On additional measures of state support for families with children," one of the areas of using maternity capital is the acquisition and construction of housing. You can send funds for a home loan:
- for a down payment;
- repayment of part of the principal debt;
- payment of interest.
Previously, the Pension Fund refused to transfer funds to pay off loans that were taken before the birth of the child. The law also forbade repaying the debt on over-credited mortgages.
However, since June 4, 2018, changes have been made to the current law. According to Government Decree No. 631 of May 31, 2018, citizens will be able to use maternity capital to pay off the principal debt and pay interest on a loan, including a mortgage, regardless of the date it was taken.
"The adopted decision eliminates legal uncertainty in the use of maternity capital to improve housing conditions and expands the possibilities of citizens for such use of these funds," the statement to the decree says.
It is estimated that about 1.9 million families will be able to take advantage of the new opportunity.
