ULAN BATOR, March 27 (Xinhua) -- Mongolia started to offer low-interest rate housing mortgages to reduce urbanization, local media reported on Monday, citing the country's Finance Ministry.
Citizens who have moved from the capital city of Ulan Bator to other parts of the country and citizens living in rural areas can apply for a housing mortgage with an interest rate of 3 percent, the ministry said.
According to the ministry, seven commercial banks started receiving requests for the low mortgage rate late last week.
The move aims to reduce urbanization and promote rural development, it said.
In 2020, the Asian country lowered mortgage rates from 8 percent to 6 percent to help more people purchase houses.
Ulan Bator is home to over half of the country's 3.4 million population. The capital city is routinely plagued by heavy traffic and air pollution. ■
