Housing Loan for Non-residents

Loans are approved for the following purposes:

• For purchase of residential property

Loan amount from EUR 15,000 to EUR 500,000 (up to 70% of the estimated market value of real estate located in an urban area).

Repayment period:
From 24 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.

Bank calculates and charges interest on the amount of the approved housing loan for non-residents at a variable interest rate:

• For the first 3 months, the interest rate is fixed and amounts to 5.60% annually for loans insured by NMIC and 5.90% for loans not insured by NMIC;
• After the 3rd month, the interest rate adjustment is carried out and the interest rate is calculated as the sum of 6M EURIBOR valid on the day of adjustment and the fixed margin which is 3.40% annually for loans insured by NMIC and 3.70 % annually for loans not insured by NMIC.

Adjustment of the said interest rate is performed according to 6M Euribor, every 6 months, counting from the day of expiry of the first 36 months following the loan disbursement date, until the end of the repayment period.

On the due date of the thirty-sixth annuity, the loan beneficiary pays the contracted annuity formed on the loan disbursement date. After that, the bank will form a new annuity for the next six-month repayment cycle, according to the 6M Euribor valid on the due date of the previous annuity.

Interest is calculated using the proportional method.

Bank calculates default interest on all due and outstanding loan obligations at the interest rate prescribed by the Law on Default Interest, or the contracted (regular) interest rate if it is higher. Default Interest is calculated using the proportional method.

For the period from the loan disbursement date until the date on which the loan repayment starts (last day of the month), the Bank calculates intercalary interest rate equal to the contracted regular interest rate. Intercalary interest is charged at the moment the loan repayment starts.

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 10,080*
• Real estate insurance - EUR 40 annually*
• Certificate of title issuance fee EUR 10*
• Real estate appraisal EUR 100*
• Mortgage registration fee RSD 20,000*
• 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.