In 2001, for easing the housing problems of ethnic Hungarian intellectuals, especially those of the university lecturers, the Foundation for School has announced its loan program for buying a house/flat. The aim is to provide those university lecturers who are not real estate owners in Cluj an extra aid for supplementing their private funds for house/flat acquisition.
The applicants become the owners of the real estate, and – according to the contract signed with the Foundation for School as sponsor – undertake to pay back the loan in 10 years. Until the loan is completely refunded, the Foundation for School has the right of mortgage. When settling the amount of monthly refund and the period of the total refund, it was an important issue for the installments not to exceed 17,000-24,000 HUF/month. If the owner decides to sell the real estate (bought with the support of the Foundation for School) before refunding the whole amount of the loan, he/she is to repay the remaining of the loan to the foundation within three months. If being late with installments, the borrower has to pay a default interest. If the sponsored person – for any reason – becomes insolvent, the foundation has the right to sell the real estate.
In the frame of the program the lecturers younger than 55 can apply for a sponsorship on an application form. The Curatorial Board has established the highest amount of the loan at 2.5 million HUF, paid in ROL/RON at the Romanian National Bank’s currency for the contractual day. The installments of the interest-free loan have to be paid back starting after one year of grace. The amount of the interest-free loan has a yearly handling charge of 1.5%.
The Foundation for School has announced the program in 2001. The application deadline was June 20. Until this date the foundation has received 8 applications. The available amount of money, offered by the Illyés Public Foundation, has covered 5 applications.