Is it possible to repay a car loan with maternity capital? Is it possible to repay a consumer loan with maternity capital?
Maternity capital is a special benefit created for the purpose of providing financial assistance to young families by the state. For the first time this type of benefit appeared in Russia on January 1, 2007. About how to receive this benefit, as well as what it can be spent on, and is it possible to withdraw money from maternity capital?
What documents are needed to register maternity capital?
To provide funds at the birth of children, the parent must submit the following list of documents:
- Passport or any other document confirming the citizen’s identity, as well as his place of residence.
- Birth certificate of the child for whom they receive cash benefits.
- Confirmation of Russian citizenship for a born citizen.
Usually it can be established using a special seal that is on the birth certificate.
- SNILS number of one of the parents who submits the application.
If the application is submitted by the father or adoptive parent, then the following list of documents must be additionally submitted:
- A document confirming the death of the mother.
- A court decision confirming the death of the mother.
From this list of documents it is clear that the father has the right to receive cash benefits from state social benefits only if the child’s mother dies or is deprived of parental rights.
When a commitment is made:
- If parents intend to spend the money given to them for the birth of their children to purchase living space, then they need to register this housing as the common property of the family. If the housing is not registered in the name of all family members, the Pension Fund has the right to require a written commitment certified by a notary.
- The owner of the acquired residential space is required by law to register this housing for all family members, including children.
- The agreement must stipulate the share of each family member.
- In cases where the housing has already been registered as the common property of the family, there is no need to formalize an obligation, since all legal requirements have already been met.
- The prosecutor's office and guardianship authorities have the legal right to check the fulfillment of obligations, and if during the inspection they reveal violations, then an application will be filed against the owner of the living space in court, the purpose of which is to invalidate the agreement on the purchase of living space with funds allocated from maternity capital.
How to fill out the obligation:
- Such a document is completed in ordinary written form.
- Depending on the type of home purchase, there are several options for filling out the obligation.
- The law does not provide clear requirements regarding filling out the obligation, but each region has its own requirements regarding the form of filling out the document. So before you apply, check with your Pension Fund office to see what commitment form you will need to complete.
- Often the notary has ready-made forms for formalizing the obligation, so all you have to do is fill them out.
To receive maternity capital to improve housing conditions, the applicant will need to do the following:
- The purchased living space must be listed as an independent living space and, by law, it must be in full ownership of all family members.
- An apartment or house that is purchased using maternity capital must be located in the Russian Federation.
- The conclusion of a transaction must be carried out exclusively in a legal manner.
- When submitting an application to receive funds, the applicant must indicate the purpose of receiving the money, as well as the full cost of the purchased living space, which must also be confirmed by official documents.
Payments upon the birth of a second child
In accordance with Russian legislation, the state provides financial support to families upon the birth of a second child as follows:
- The child's parents are paid monthly benefits. The amount of this benefit is 40% of the mother’s average salary over the last two years. The benefit is paid until the child reaches three years of age.
- One-time payment from maternity capital. For 2017, the amount of this benefit was 16,350.33 rubles. Then the payment was increased to 25 thousand rubles. Payments will no longer be made in 2019, and in 2020 these subsidies are not provided for by law.
- Maternal capital. The amount of this benefit for the birth or adoption of a second child is currently 453,026 rubles. Moreover, an increase in this amount through indexation is not envisaged until 2020. So the payment amount will not change.
There were often proposals to introduce the opportunity to spend this benefit on purchasing a car or repaying a loan, however, all initiatives were ultimately rejected.
So today you can only spend funds from maternity capital on the following purchases:
- Purchasing living space for the whole family. Accordingly, owners of maternity capital can spend it to pay part of the mortgage loan or to build a house. The main condition in this case is that the living space must be registered in the name of all family members.
- Obtaining paid education in educational institutions. Maternity capital can be spent on educating children in fee-paying schools, colleges, schools, lyceums and universities. Also recently, the opportunity to pay for the services of private kindergartens from maternity capital was introduced. Currently, deputies are discussing the issue of allowing the use of funds allocated from this benefit for the education of the child’s parents.
- Increase in pension provision. In this case, the child’s mother can donate maternity capital to the Pension Fund in order to increase her pension.
How to take out a targeted loan for maternity capital, watch the video:
Unlike China or India, the birth rate in Russia remains at a fairly low level. The state strives to support families where children are born. One form of such support is maternity capital. But it is worth knowing in advance about the conditions for using this subsidy, as they are non-standard.
What is maternity capital
Maternity capital first appeared in Russia in 2007. This measure of social support is available only to those families where a second, third or subsequent child was born. In this case, adoption of a child is also allowed. Maternity capital is issued once per family. It is not possible to receive it again.
Currently, the program providing for the issuance of maternity capital is valid until 2020, inclusive. At the same time, it is possible to extend it, which has already been done several times by the Russian government.
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It is worth considering that the state maintains strict control over the expenditure of funds allocated to support families with a second and subsequent child. At the same time, the law specifies the points and purposes for which funds received under the program can be used.
The Russian Pension Fund is responsible for issuing and monitoring the expenditure of funds under maternity capital programs. However, you cannot receive funds in cash. All transfers occur within a few weeks. As a rule, the seller will receive money from the buyer’s maternity capital in 2-3 months.
Maternity capital cannot be used for any purpose; federal law strictly stipulates what funds received under this program can be spent on.
Here are the main expenses where material capital can be used:
- improvement of living conditions;
- child's education at university, etc.;
- mother's pension savings.
Women who had their second and subsequent children after 2007 can receive government support under the state support program - “Maternity Capital”, if they were not previously participants in the program.
Important! Maternity capital cannot be used for any purpose. It is completely controlled by the state pension fund. If this condition is violated, the recipient of the mat. capital may receive a lawsuit and even a real sentence.
Video: When to use
What is it for?
Maternity capital in 2020 is only a measure of government support. It cannot be spent entirely at your own discretion. All expenses from this subsidy must correspond to the expenses allowed under the state program. Otherwise, the recipient is swearing. capital may face criminal prosecution.
Important! Funds received as part of the program to support families with second and subsequent children cannot be cashed out and cannot be used at your own discretion. This program provides only targeted spending. It is also not possible to receive funds in cash.
Let's consider where you can spend the funds received under the mat program. capital:
- purchasing an apartment or other improvement of living conditions;
- payment for the education of any of the children, including preschool level;
- contribution to part of the payment of the labor pension for the mother.
Using funds for other expenses is not only unacceptable, but also violates federal law. Sometimes it is allowed to receive part of the funds under the maternity capital program in cash. This usually happens during times of difficult economic situation in the country.
People often wonder whether it is possible to repay a car loan with maternity capital. It should be said right away that this is unacceptable. On the Internet you can find many advertisements offering to cash out maternity capital funds. This is not only strictly prohibited, but may also result in criminal liability.
It is worth considering that you can spend money under the program to pay off a loan, but only if the loan was issued to pay the full cost or build housing. This must be clearly stated in the loan agreement. Only mortgage repayments are allowed.
If a client wants to repay using funds under the program a loan that was not aimed at improving credit conditions, he will be denied.
Important! You can take out a loan against maternity capital not only from a bank. Consumer credit cooperatives can also arrange such a transaction. It is worth knowing that the rate in the PDA is much higher.
Until 2020, it was possible to issue loans for maternity capital by various microfinance organizations. This is currently prohibited at the state level due to the increased level of fraud from such companies.
Who can use it
Mostly swearing. capital is available only to the mother of the second, third, and so on child born after 2007. In exceptional cases, this state subsidy is given to the father of the child.
Let's consider the options when it is permissible to spend maternity capital funds by the child's father:
- death of mother;
- adoption, when the child's father becomes the sole parent.
It is worth knowing that the right to receive swearing. capital is given once. It will not be possible to receive funds under the program again for the birth of subsequent children.
You can use maternity capital for your family. Therefore, transactions are allowed not only by the owner of the certificate, but also by his spouse.
No additional taxes are paid on maternity capital. If a person uses part or all of the funds received from the state under the program, then he does not have to pay additional personal income tax. These funds are not considered income.
You can take out a mortgage through special programs that are available in many large banks. For example, Sberbank and VTB 24 are ready to offer certificate holders reduced interest rates.
The government has tried many times to cancel the maternity capital program. But at the moment these initiatives are not succeeding. Draft decrees simply do not pass the approval stage.
There are often cases of illegal use of maternity capital funds. Microfinance organizations were often involved in fraudulent cases. This has led to restrictions on companies that can operate with such certificates.
Let's consider who can currently provide a loan for maternity capital:
- banks;
- consumer credit cooperatives that were registered more than 3 years ago.
Attracting microfinance organizations to use matt funds. capital is prohibited at the legislative level.
Important! The maternity capital certificate cannot be the subject of collateral. This limits its use for illegal purposes.
Is it possible to repay a car loan with maternity capital?
Many banks offer lending programs where maternity capital is used as payment. These proposals are aimed at paying for education or purchasing real estate.
The purpose of the loan is immediately stated in the agreement. If the client uses the funds to pay for other services or goods, the bank may demand immediate repayment of the loan or apply penalties.
The issue of the possibility of using funds under the mat certificate has been considered many times at the government level. capital to repay part of the loan when purchasing a car. At the moment, this possibility is not available at the legislative level.
Important! It will not be possible to use maternity capital to pay for a car loan. This possibility is not provided for by federal law.
Many regions are introducing separate programs to support families where a child was born. The conditions vary significantly; sometimes the funds received under such programs can be used, including to repay a car loan.
It is worth knowing that money allocated under the maternity capital program is transferred only after a written application from the certificate holder to the Pension Fund.
You cannot use the certificate. capital to pay off a car loan. This is due to restrictions under federal law. If these conditions are violated, the certificate owner is at risk. He may also face prosecution.
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Starting from June 2018, innovations regarding the use of maternity capital, which was used to improve living conditions, came into force.
Married couples with children now have the right to pay mortgage loans and accrued interest on them with a Certificate, regardless of when the obligations under the loan agreement arose.
Was restriction lifted, which prohibits the distribution of funds through maternity capital to repay a loan or mortgage, the loan transaction for which was concluded after the birth of the baby, but until he turns three years old.
Let’s take a closer look at the features of the innovations that have come into force, as well as how to apply for and pay for a loan by transferring the target money.
How to spend your Maternity Certificate money in 2018
A married couple can use maternity capital to make payments on a credit transaction if they are raising two or more of their own or adopted children who were born after 2007. A similar project extends its effect until 2021.
There are a number of restrictions, which prohibit parents from spending funds from the Certificate at their own request or for personal needs.
One of the most popular areas of use of maternity capital, which is permitted at the legislative level, is improving the quality of living conditions. Based on the established rules, it was possible to direct funds in this way:
- Build or purchase residential real estate, including by attracting loan capital, but only after the child turns 3 years old.
- Pay off the loan with maternity capital, namely, take part in mortgage lending, the agreement on which was concluded before the baby was born in the family, that is, before the rights to issue a Certificate arose.
In 2015, it became possible to use maternal money to pay the down payment on a mortgage loan without waiting until the baby is 3 years old. But repaying accrued interest or the loan amount that was spent on the purchase or construction of housing, using maternity capital in this way, was previously prohibited.
Starting from January 2018, a family can count on a preferential loan at 6% per annum if it has 2 or 3 children. The validity of such conditions began on January 1, 2018 and is valid until December 31, 2021.
According to the new rules that came into force in June 2018, the family will be able to use the target money, regardless of when the obligations arose. At the same time, you can use maternity capital to repay the loan in the following way:
- Repay a loan for the purchase of residential real estate that was issued earlier.
- Pay off debt on a loan that was obtained for the construction or reconstruction of a house or apartment.
- Pay interest and principal on the mortgage.
That is, when a married couple, after the birth of the baby, entered into a loan agreement for the purchase or construction of residential real estate and paid the initial payment with personal funds, then they can repay the loan amount or accrued interest on the mortgage using the Certificate. In addition, maternity capital money can be directed and used to pay the down payment.
Unfortunately, not all banking institutions provide this type of service Therefore, it is necessary to carefully study the loan agreement and the conditions specified in it.
Please note: the innovations do not allow parents to repay consumer loans or interest accrued on them with targeted funds. In addition, you cannot pay with maternity funds various fines or other charges that were introduced by the bank in case of violation of the loan capital repayment schedule.
That's why must be carefully monitored, preventing delays and the application of penalties.
That is, it is necessary to deposit funds under the loan agreement on a regular basis.
You can send targeted funds to pay off the loan only if the child has been allocated a share of the property in the acquired or constructed residential property.
How to conclude a mortgage loan deal
In order to spend targeted money on the purchase of residential real estate you need to go through these steps:
- An individual (this can be either the father or the mother of the child, the main thing is that the marriage is concluded) receives consent from the banking institution to issue a mortgage loan. Ownership of housing is registered.
- The bank pays the funds to the seller of the apartment. In this case, the acquired real estate acts as collateral.
- The client informs the bank that he plans to repay the loan using maternity capital.
- The banking organization provides data on the remaining amount to be repaid and accrued interest, as well as a deed that indicates ownership of the purchased apartment.
- With the collected package of documents, the individual applies to the Pension Fund to obtain the appropriate permission to use the Certificate for its intended purpose and pay for the loan with maternity capital.
- The pension fund must review the submitted documents and communicate its decision in writing. The application review period is approximately 30 days.
- With the response received, the client contacts the bank. If the decision is positive, the Pension Fund transfers maternity capital funds to the account of the banking institution within 2 months.
After the bank receives the funds, there are several options for the development of events:
- The loan period will be reduced, but the amount of monthly payments will remain unchanged.
- The loan period will remain unchanged, but the amount of monthly payments will be significantly less.
- The loan will be fully repaid (if the amount of maternity capital is sufficient).
Similar scenarios agreed with the individual, for whom the loan agreement was drawn up.
Important: if the loan is repaid in full, ask the bank for documents indicating the closure of the loan agreement so that the banking institution does not have questions or claims against you in the future.
What documents are provided to obtain a Certificate?
The individual for whom the Maternity Capital Certificate is issued must go to the local branch of the Pension Fund with a prepared package of documentation:
- Application of the appropriate sample.
- Information provided by the banking organization about the amount of debt on the loan.
- Passport. If the loan transaction is executed in the name of the second parent, then a marriage certificate must also be provided.
- A document that confirms ownership of real estate.
- Obligation of common ownership of housing - it must be certified by a notary. This document must indicate the exact shares of the apartment owners after 6 months from the date of loan repayment.
- Consent of the banking institution to transfer money to repay the loan using maternity capital funds.
Pension Fund employee will issue a receipt about the documents received.
Other areas of application of earmarked money
In addition to using children's money to pay off mortgage loans, there are other areas of its application.
Married couple may use the Certificate to:
- pay for the child’s education;
- spend money to increase the size of the mother’s funded pension;
- pay for treatment, rehabilitation or special devices for the rehabilitation of a child with disabilities.
Please note: compensation of maternity capital in cash or by crediting to a card or other account opened with a banking organization is not carried out. Money can only be used in non-cash form and only for targeted needs.
Since the beginning of 2018, applying the Certificate you can pay for preschool education until the baby is 3 years old.
Received additional protection very low income couples- they can receive money on a regular basis until the child is 1.5 years old. At the same time, the scope of use of children's money is not specified, so it can be used as the parents see fit. A family can count on such a benefit if its total income is less than 1.5 times the subsistence minimum for the locality in which the family lives.
As you can see, a number of innovations allow families to use maternity capital money to the fullest to improve not only their lives, but also the life of the baby.
Is it possible to pay off my husband’s car loan with maternity capital?
No, it's not possible to do this
Maternity capital has a purpose. A car loan definitely doesn’t apply there.
Hello. Unfortunately, no, the legislation of the Russian Federation does not provide for this. See Federal Law of December 29, 2006 N 256-FZ (as amended on October 30, 2018) “On additional measures of state support for families with children” Article 7. Disposal of maternal (family) capital funds 3. Persons who have received a certificate may dispose using maternal (family) capital in full or in parts in the following areas: 1) improving housing conditions; 2) education of the child (children); 3) formation of a funded pension for women listed in paragraphs 1 and 2 of part 1 of Article 3 of this Federal Law; 4) purchase of goods and services intended for social adaptation and integration of disabled children into society; 5) receiving a monthly payment in accordance with the Federal Law “On Monthly Payments to Families with Children.”
Can I pay off a car loan with maternity capital?
Good afternoon No, this does not apply to the intended purpose of payments under the certificate in accordance with Federal Law 256. 3. Persons who have received a certificate can manage the funds of maternal (family) capital in full or in parts in the following areas: 1) improving housing conditions; 2) education of the child (children); 3) formation of a funded pension for women listed in paragraphs 1 and 2 of part 1 of Article 3 of this Federal Law; 4) purchase of goods and services intended for social adaptation and integration of disabled children into society; 5) receiving a monthly payment in accordance with the Federal Law “On Monthly Payments to Families with Children.” Best wishes to you!
Can I pay off a car loan with maternity capital?
Federal - you definitely can’t. Federal Law of December 29, 2006 N 256-FZ (as amended on March 7, 2018) “On additional measures of state support for families with children” Article 7. Disposal of maternal (family) capital funds 3. Persons who have received a certificate may dispose of maternal funds (family) capital in full or in parts in the following areas: 1) improvement of housing conditions; 2) education of the child (children); 3) formation of a funded pension for women listed in paragraphs 1 and 2 of part 1 of Article 3 of this Federal Law; 4) purchase of goods and services intended for social adaptation and integration of disabled children into society; 5) receiving a monthly payment in accordance with the Federal Law “On Monthly Payments to Families with Children.”
Say a
Hello Irina! No, unfortunately, a car loan cannot be repaid with maternity capital. The Pension Fund of the Russian Federation will not give permission to use maternal capital..
Hello Irina. No, this type of use of maternity capital funds is not provided for by the legislation of the Russian Federation.
Good afternoon Maternity capital funds can be used for the following purposes: to improve housing conditions by non-cash transfer of the specified funds for the purchase of housing in the Russian Federation. for the education of any child not older than 25 years in educational institutions (from kindergarten to university) in the territory of the Russian Federation. to increase the funded part of the mother’s labor pension; for the purchase of goods and services for the social adaptation of disabled children, except for medical services and rehabilitation measures (from 01/01/2016). A car loan cannot be repaid with maternity capital.
No, such goals are not provided
Is it possible to pay off a car loan with maternity capital?
No you can not. In accordance with Part 3 of Article 7 of the Federal Law of December 29, 2006 N 256-FZ “On additional measures of state support for families with children,” persons who have received the certificate can dispose of maternity (family) capital funds in full or in parts according to the following directions: 1) improvement of living conditions; 2) education of the child (children); 3) formation of the funded part of the labor pension for women listed in paragraphs 1 and 2 of part 1 of Article 3 of this Federal Law. In accordance with Part 6 of Art. 7 of this Law, an application for disposal may be submitted at any time after three years from the date of birth (adoption) of the second, third child or subsequent children, except for the case provided for in part 6.1 of this article. Part 6.1 of Article 7 of the Federal Law of December 29, 2006 N 256-FZ stipulates that an application for disposal may be submitted at any time from the date of birth (adoption) of the second, third child or subsequent children if it is necessary to use the funds (part of the funds) of the maternal ( family) capital to pay the down payment and (or) repay the principal debt and pay interest on loans or borrowings for the purchase (construction) of residential premises, including mortgage loans provided to citizens under a loan agreement (loan agreement) concluded with an organization, including credit institution.
Is it possible to repay a car loan with maternity capital?
According to Part 3 of Art. 7 Federal Law of December 29, 2006 N 256-FZ “On additional measures of state support for families with children,” persons who have received the certificate can dispose of maternal (family) capital funds in full or in parts in the following areas: 1) improving housing conditions ; 2) education of the child (children); 3) formation of a funded pension for women listed in “clauses 1” and “2” of Part 1 of Article 3 of this Federal Law.
Is it possible to repay a car loan for a domestic car with maternity capital?
Hello, no it is not possible.
There is no provision for spending financial capital on the purchase of a car.
I would like to know if it is possible to repay a car loan with maternity capital?
No, the law does not provide such an opportunity.
Is it possible to repay a car loan with maternity capital?
This is impossible. Not provided by law.
And if you try to “cash out” capital, first read the criminal code.
Is it possible to repay a car loan with maternity capital?
In Russia, there are also regional maternity capital programs, paid at the birth of the third child in the family. In some regions, regional capital is allowed to be spent on purchasing a car, for example, in the Novosibirsk, Ulyanovsk, Kaliningrad, Oryol regions, and in the Kamchatka Territory.
no, this is not provided for by law
Is it possible to repay a car loan with maternity capital?
this is not provided for by law
Please, is it possible for maternity capital to repay a car loan issued in 2008 for my husband? My husband and I live in a civil marriage, but both children are registered in his last name. Children 4 years old and 1 year old, is it possible for M.K. use for parent training? Thank you very much in advance for your answer.
Of course - you can't. neither for a car loan nor for parental education
Is it possible to repay a car loan with maternity capital? if the credit is on me? and if the loan is on the husband? Thank you!
cannot be repaid - the law does not provide for the direction of capital for such purposes
Maternity capital is issued strictly: to repay a loan to improve housing conditions, for the mother's future pension, and for the education of children. Car loan repayment is unacceptable!
No, MK cannot be spent on repaying consumer and car loans.
Is it possible to repay a car loan with maternity capital?
no you can't do that
Is it possible to repay a car loan with maternity capital? Alexey, you can't
Can I use maternity capital to pay off a car loan if my child is already 3 years old?
You can’t. This is not provided for by law. Such a law is only being discussed and discussed.
Nadezhda, it seems to me that even small children already know that both a purchased car and a car loan cannot be repaid.
Is it possible to repay a car loan with maternity capital in 2010? The child was born in 2009. Thank you.
Can I pay off a car loan with maternity capital at the moment?
Lily! A car loan cannot be repaid with maternity capital. Only mortgage loans can be repaid. Sincerely, Alekseeva Yu.A.
Is it possible to repay a car loan received in 2007 with maternity capital?
No. Maternity capital is not provided for this. Nikolay Vasiliev
Please tell me, can I pay off a car loan with maternity capital? The car loan was issued to my husband!
No, you can’t, only for housing, education or your mother’s pension.
Is it possible to repay a car loan with maternity capital?
No you can not. Maternity capital can be used in the following areas: 1) improving housing conditions; 2) education of the child (children); 3) formation of the funded part of the labor pension for a woman. (Clause 3, Article 7 of the Federal Law of the Russian Federation of December 29, 2006 N 256-FZ “On additional measures of state support for families with children.”
Today, the amount of maternity capital is 365 thousand 698 rubles 40 kopecks. At first, it was given to parents in cash. However, the deputies, having concluded that the funds were being spent for other purposes, decided to limit the maximum amount given to parents for necessary housing needs to 12,000 rubles.
Now this amount can be spent on the child’s education, replenishing the funded part of the mother’s labor pension, or improving the family’s living conditions. Many families have the opportunity to pay off their mortgage this way. The dream of many fathers is to repay a car loan with maternal capital. Unfortunately, this is impossible today, but the State Duma has periodically raised this issue for several years.
Initially, they abandoned this idea, considering that buying a car was not a vital necessity for a young family. However, before the start of elections at the end of 2011, this issue was raised again. Either the deputies really decided to enter into the position of ordinary citizens, or they simply wanted to thereby attract the attention of voters. However, the victorious United Russia proposed amending the legislation and allowing young families to purchase a car or repay a car loan with maternity capital. But there are still many opponents of such an idea in the State Duma. Disagreements and disputes on this issue do not subside. Officials who have several executive class company cars believe that a car for a family with young children is not a vital necessity.
However, this topic is very relevant for families who have disabled children or whose children go to school long distances from home. According to the lawmakers, it will be possible to purchase only a Russian-made car with maternity capital, which in turn will support the Russian automobile industry.
For now, the idea remains an idea, but, according to representatives of the State Duma, this issue will be considered in the first reading in early May 2012. Many young families are frozen in anticipation. If the bill comes into force, it will make life and living conditions easier for many families. By paying off a car loan or buying a new car, parents will be able to focus their attention on their children and spend the money they earn on their development and education.
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There are no longer any people left in Russia who have not heard about the state program “maternity capital”. However, not everyone knows that there are things that are prohibited from paying with this money. And trying to cash out maternity capital is actually a crime! Is it possible to pay for a car loan with maternity capital? Let's figure it out. Ilya Kulik is with you, let's go!
In order not to go into the historical details of the emergence of maternity capital, I will only remind you that this is a state initiative to provide financial support to families with two or more children, which has been in effect for 10 years. The term “maternity capital” usually refers to a federal subsidy. The amount of aid allocated by the state grew continuously until last year and reached 453 thousand rubles, after which the indexation of payments was temporarily stopped.
In addition to the federal program, 71 regions of the Russian Federation have their own programs, which are united under the general name “regional maternity capital”. You can receive financial support from the regional budget for the birth of your third and subsequent children, and the amount paid ranges from 30 to 350 thousand rubles. On average it turns out to be 50-100 thousand.
The conditions for the provision and use of federal and regional subsidies differ. The list of needs on which federal financial assistance can be spent is smaller, and control over the intended use of money is stricter. This is due to the fact that:
- It is easier to obtain the right to federal capital than to regional capital;
- Federal matkapital is larger in size and is of greater interest to scammers.
Who is entitled to government assistance and what it can be spent on is described in detail in Art. 3 and Article 7 of the Federal Law of December 29, 2006 N 256-FZ “On additional measures of state support for families with children.” Here is a short list of permitted actions:
- Purchase or construction of housing;
- Payment for the child's education;
- Payment for health care services;
- Saving money to increase your mother's pension.
As you can see, there is no provision in the law for purchasing a car or paying off an existing car loan. It turns out that public money cannot be managed in this way.
The government’s approach to the issue of buying a car using maternity capital cannot be assessed unambiguously. The authorities justify the ban on spending subsidies on car purchases with strong arguments:
- A car loses significant value after a few years of use, and cannot be compared in terms of prospects with purchasing a home or getting a child a quality education;
- Officials see the legal way to cash out maternity capital as purchasing a car using public funds;
- It is difficult to control the intended use of the car. Even if the possibility of quick resale of a car is excluded by law, it is impossible to be sure that it is used for the needs of a child;
- The authorities do not want to act in the interests of car manufacturers and organizations involved in the sale of cars. By providing the opportunity to spend maternal capital on the purchase of vehicles, they will not only help large families, but will increase car sales.
However, by denying families with children the right to spend federal money on buying a car, officials do not take into account several important things:
- The amount of maternal capital is not enough to buy housing or build it on your own. At the same time, this money is enough for a budget car made in Russia;
- It is irrelevant to spend maternity capital on paying for children’s education or providing mother’s pension for families that already have housing. In this case, the funds will remain unclaimed, which reduces the effectiveness of maternity capital as a stimulus for fertility;
- The car makes it easier to move with children from home to kindergarten, school, clinic or hospital. This is especially important for families living in rural areas, because they have to travel to regional centers for medical care;
- Having a car in the family will open up new ways of earning money for the child’s parents, which can improve the quality of life for the entire family.
In addition, supporters of lifting the ban on car purchases convince the authorities that they need to trust their parents instead of suspecting them of wanting to cash out their maternity capital and spend it on themselves.
It is hoped that in the coming years the subsidy will be allowed to be used for obtaining a car loan. In March 2017, an amendment to the law was proposed for consideration by the State Duma, providing for the purchase of a car on credit using maternity capital money. This is not the first attempt to change the Federal Law 256: State Duma deputies rejected three bills in 2009, 2011 and 2014.
See details about the initiative of deputies here:
Draft federal law No. 125755-7, currently under consideration, provides for a number of conditions, including to reduce the risk of cash withdrawal fraud:
- You can only buy a new domestically produced car;
- It is allowed to purchase a car on credit or in installments;
- The car does not have to be a passenger car, but must be designed to transport people and have no more than 8 passenger seats;
- The purchase of a vehicle must be confirmed by an inspection report drawn up by the social protection authorities at the place of residence;
- The car is purchased as the property of one of the parents, and it cannot be sold or transferred for 3 years after purchase;
However, even under such conditions, officials are not yet ready to approve the expenditure of maternal capital on the purchase of a family vehicle. The fact is that allowing the family subsidy to be used to buy a car will lead to a sharp increase in applications for the payment. The federal budget does not include expenses for maternity capital payments in such a large volume, and therefore, in order to adopt the amendment, a permitting conclusion from the Government of the Russian Federation is required, which the authors of the bill do not yet have.
In the regions, the attitude towards spending regional capital funds is softer. In a number of areas, a car loan is included in the list of allowed expenses, or there are no restrictions at all on the use of the allocated money. Here is the current list of regions where it is allowed to spend regional capital on buying a car:
- Vologda Region;
- Kaliningrad region;
- Kaluga region;
- Kamchatka Krai;
- Murmansk region;
- Novosibirsk region;
- Oryol Region;
- Tula region;
- Tyumen region;
- Ulyanovsk region;
- Republic of Yakutia.
The amount of a regional subsidy is not always comparable to the cost of a car, but, for example, the payment to families upon the birth of a sixth child in the Ulyanovsk region is 250 thousand rubles. This money is already enough for a down payment on a car loan.
Large families of the Kamchatka Territory are entitled to a payment of about 300 thousand rubles, while they are allowed to buy on credit not only new cars, but also used cars from private individuals with installment payment.
Using the Kamchatka Territory as an example, let’s look at what the process of buying a car on credit using maternity capital money looks like.
To apply for a loan using a regional subsidy, you need to collect a number of documents:
- Vehicle purchase and sale agreement;
- Vehicle passport issued in the name of the child’s mother;
- Certificate for regional family subsidy;
- A copy of a document confirming the identity of the certificate holder;
- A car loan agreement concluded between the certificate holder and a credit institution, or a loan receipt if you purchased a car in installments from a private person;
- A certificate from the bank about the amount of the principal debt on the loan and the balance of the debt on interest. If you took out a loan from a private person, you will need a certificate of the amount unpaid under the agreement;
- Bank details of the car seller. To receive money from the regional budget, the seller must have an open bank account.
With the collected documents, a certificate for regional maternity capital and a written application, you must contact the regional office of the Pension Fund. Funds are transferred exclusively in non-cash form, the transfer period is no more than two months from the date of application for payment.
- There are 2 types of maternity capital in Russia: at the federal and regional level;
- You cannot buy a car with federal family subsidies. This prohibition has been in effect since the beginning of the federal program;
- Lifting the ban on buying a car using maternal capital is possible, but not earlier than the next two years;
- In several regions, regional subsidies can be used to buy a car, including a used car, from a private individual. You can also use this money to pay off an existing car loan.
This concludes my story about how to use maternity capital to buy a car. Feel free to share your opinion on this topic in the comments. Bye everyone!
1. Is it possible to pay off my husband’s car loan with maternity capital?
1.1. No, it's not possible to do this
1.2. Maternity capital has a purpose. A car loan definitely doesn’t apply there.
1.3. Hello. Unfortunately, no, the legislation of the Russian Federation does not provide for this. See Federal Law of December 29, 2006 N 256-FZ (as amended on October 30, 2018) “On additional measures of state support for families with children”
3. Persons who have received a certificate can manage maternity (family) capital funds in full or in parts in the following areas: