Housing Loan for Non-residents

Loans are approved for the following purposes:

• For purchase of residential property

Loan amount from EUR 70,000 to EUR 500,000 (up to 70% of the estimated market value of real estate located in an urban area).

Repayment period:
From 96 to 240 months

Housing loan is repaid in equal monthly annuities in EUR, which are due on the last day of the month.

Minimum 30% of the purchase value of the real estate.

The Bank shall calculate and charge interest for the amount of the housing loan granted to non-residents at the interest rate which is variable:

• for the period of first 36 months it is fixed and amounts to 4.80% annually;
• after the 36th month, the interest rate shall be adjusted and set as a sum of the 6M EURIBOR applicable on the day of adjustment and the fixed margin amounting to 2.90% annually for the loans insured with the NKOSK, i.e. 3.40% annually for the loans not insured with the NKOSK.

The above mentioned interest rate shall be adjusted according to the 6M EURIBOR every 6 months counting from the day of expiry of the first 3 months following the day when the loan was disbursed until the end of the repayment period.

On the day of maturity of the thirty-sixth annuity, the borrower shall pay the agreed annuity formed on the day when the loan was disbursed. After that, the Bank shall form a new annuity for the next six-month repayment cycle, according to the 6M EURIBOR applicable on the day of maturity of the previous annuity.

The interest shall be calculated by applying the pro-rata method.

On all matured but not duly settled liabilities on the loan the Bank shall calculate default interest in the amount of the interest rate set by the Law on Default Interest, i.e. agreed (regular) interest rate if it is higher. The default interest shall be calculated by applying the pro-rata method.

For the period starting from the day when the loan was disbursed until the date it was transferred for repayment (last day of calendar month) the Bank shall calculate an intercalary interest at the interest rate that is equal to the agreed regular interest rate. The intercalary interest shall be charged at the moment when the loan was transferred for repayment.

Costs borne by the client are known at the time of publishing and are included in the calculation of the effective interest rate.

• Application processing fee is 0.25% of the approved loan amount, charged in EUR
• Promissory notes (four) RSD 200
• Credit Bureau basic report RSD 246*
• NMIC fee EUR 30*
• NMIC insurance premium (according to the NMIC Tariff, 1.5% to 2.75% of the approved amount)
• Certification of pledge statement RSD 17,200*
• Real estate insurance - EUR 40 annually*
• Certificate of title issuance fee EUR 10*
• Real estate appraisal EUR 100*
• Mortgage registration fee RSD 68,400*
• Life insurance - EUR 100 annually* (optional)
• Cost of registering the loan with the NBS in the amount of RSD 5,000*
• Other costs arising from other fees related to the housing loan.

*Costs borne by the client, which are included in the calculation of the effective interest rate, and over which the Bank has no influence. Please note that these are approximate (average) amounts over which the Bank has no influence, and which depend on the fees and charges of notaries/courts, the Geodetic Authority, insurance premiums issued by insurance companies, etc.

In order to secure the collection of the loan by the Bank, the Client shall provide the following instruments for securing the collection of the loan:

• 4 (four) blank solo promissory notes signed by the borrower;
• Insurance policy for the property, which is the subject of the mortgage, assigned to the Bank issued by an insurance company acceptable to the Bank. Insurance is mandatory for the entire duration of the loan; the premium is paid annually;
• First-rank mortgage in favour of the Bank on the basis of a legally binding Decision on registration of a mortgage, constituted on residential immovable property in an urban area;
• Second-rank mortgage is allowed on building under construction, which, at the moment of obtaining a use permit and registration of a separate part, will become a first-rank mortgage on the residential unit that is the subject of the purchase and sale in an urban area;
• Foreign currency deposit in the amount corresponding to the value of 6 (six) monthly loan annuities;
• NMIC insurance policy for loans insured by NMIC;
• Bank may, at its own discretion, request the loan beneficiary's life insurance policy assigned to the Bank issued by an insurance company acceptable to the Bank.

The obtained loan security instruments can, at the Bank's discretion, be replaced with other security instruments acceptable to the Bank.

The loan is realized by a one-time transfer of the funds of the approved loan to the foreign currency current account of the loan beneficiary, upon certification of the report on the specific loan approval by the National Bank of Serbia.
Immediately after receiving the payment of the loan funds, the transfer is made from the foreign currency current account of the loan beneficiary to the seller's foreign currency account in accordance with the purchase and sales contract.

Early and partial loan repayment is free of charge.

Documentation to be submitted by the client (certified translation into Serbian language):

• Identification document: passport issued by another country, i.e. another document proving residence in a foreign country;
• Employment contract and/or employment certificate containing data on the type of employment, amount of salary and duration of employment with the last employer (at least 12 months);
• Turnover on the account for 12 months;
• Report issued by the Credit Bureau in the country where the client works or a bank confirmation stating that the client has no outstanding obligations.

Documentation from the Republic of Serbia:

• Identification document: identity card or passport;
• Credit Bureau report;
• Certification issued by the Tax Administration stating that there are no outstanding obligations for taxes and other public revenues in the Republic of Serbia;
• FATCA procedures apply to clients who are subject to FATCA regulations.

If necessary, the Bank may request additional documentation required to determine the client's creditworthiness.