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Renovation and refurbishment loan

Arrange your home according to your taste, but also without much trouble. Enjoy the renovation of your apartment, whether minor repairs or large housing arrangement.

Features of a renovation loan

Loan structure comprises 70% of the loan amount covered by a pro-forma invoice and 30% of cash disbursement. Cash disbursement provides you with a possibility of paying for construction works and other services in case these are not covered by a pro-forma invoice.

Offer valid till 30.06.2020.

It is required that the requested loan amount is covered by bill of quantities verified by an authorized person.

The bank reserves the right to make a decision on the loan approval, as well as to request additional documents and guarantees.

  • Renovation and refurbishment loans are indexed in EUR. Amounts expressed in EUR are calculated in RSD equivalent at the NBS middle exchange rate on the day of placement of funds. The Bank adjusts the outstanding loan amounts indexed in EUR with variations in NBS middle exchange rate for EUR each last day of the month, by applying the exchange rate valid on the respective date against the exchange rate that was in effect on the last day of the previous month, except for the first month when adjustment is made according to the exchange rate that was in effect on the day of loan disbursement.

  • Wondering why it is important to insure your life during the repayment of housing loan? Housing loan is a life project. It lasts 15-20 years on average. In the event of unforeseen life circumstances it might happen that heirs cannot repay loan instalments for mortgaged apartment. In order to secure your family, it is important to get insurance. The insurance company will reimburse the outstanding loan amount and the bank will clear the mortgage. It all depends on you.

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Representative example
Representative example of a renovation loan
Mortgage valueEUR 60,000
Loan amount EUR 30,000
Repayment period15 years
NIR annual 2.95% + six-month EURIBOR
Monthly installment 201 EUR
Fee for loan processing (0% of the loan amount)EUR 0
Expenses related to loan approval, known at the moment of publishing
Bill of exchangeRSD 50
Credit Bureau basic reportRSD 246
Certification of pledge statementRSD 10,080
Property insurance - annuallyEUR 40 in RSD equivalent
Life insurance - annuallyEUR 100 in RSD equivalent
Issuing of real estate folio in the land registerEUR 10 in RSD equivalent
Real estate valuationEUR 100 in RSD equivalent
NMIC cost (insurance premium and application processing)EUR 480 in RSD equivalent
Mortgage registrationRSD 20,000
EIR annual 4,19%
Total loan amount ( (principal, interest and costs)39.237 EUR
EIR calculated on 02.10.2019.

The calculation of the effective interest rate contains the amount of life insurance and property insurance policies for the entire period of loan repayment. EUR-indexed loans are contracted in RSD equivalent at the NBS middle exchange rate on the day of submitting the application. The Bank adjusts the outstanding loan amounts indexed in EUR with variations in NBS middle exchange rate for EUR each last day of the month, by applying the exchange rate valid on the respective date against the exchange rate that was in effect on the last day of the previous month, except for the first month when adjustment is made according to the exchange rate that was in effect on the day of loan disbursement. The interest rate is variable and consists of a reference rate - six-month EURIBOR as a variable rate, and Bank’ margin as a fixed rate, in accordance with Bank’s Tariffs. Variable interest rate is adjusted on the first business day of each month in accordance with changes in the reference EURIBOR rate which, on the day of calculations for the sake of this representative example, i.e. on 02.10.2019., stood at -0,377. This offer is for guidance purposes only. For a personalized offer we are at your disposal at our Bank’s branches.

Calculate your instalment on the assumption of the variable part of the interest rate change

Access the calculator of our Bank here

Access the calculator of the National Bank of Serbia here

Do you have any additional questions?

Additional information on applying for a renovation and refurbishment loan

Loan applicant:

  • permanent employment of indefinite duration minimum 6 months with the current employer
  • minimum 20 years of age at the time of applying for a loan
  • maximum 70 years of age at the time of maturity of the last instalment
  • transfer of personal income to the current account held with our Bank

Joint debtors:

  • one joint debtor allowed
  • joint debtor must be a close family member
  • debtor and joint debtor must reside in the apartment which is a subject of renovation
  • joint debtor must meet the same requirements as a loan beneficiary

Loan collateral instruments:

  • First-class mortgage on immovable property (the one being renovated or another one in your ownership). The ratio of mortgaged property market value to loan amount must be 2:1.
  • Life insurance and immovable property insurance policy endorsed in favour of the Bank
  • Bill of exchange and promissory note authorization

Additional benefits

You can take life and property insurance in each branch and thus complete the entire process easily and in one place. Regular payment of insurance premium is provided through standing order which is free of charge and exempt from payments fee.

List od required documents
List od documents for renovation and refurbishment loan – valid from 19.07.2019.

7 steps to purchasing an apartment

Purchasing of an apartment is considered one of our most important life decisions. In order to make this “sweet torment” as easy as possible and gathering of documents smooth, take 7 steps to circumvent the process of applying for a housing loan and purchasing of future property.

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