Banca Intesa offers new credit line for purchase of first apartment

In association with the Development Bank of the Council of Europe, Banca Intesa in Serbia has started approving new model of residential loans with annual interest rate of 6.17% today (September 1st, 2009).

According to the announcement, new credit line, 50% of which will be provided by the Development Bank of the Council of Europe, is intended for clients who want to buy the first apartment.

The surface of the apartment that is purchased through that credit line depends on the number of members of household, so that bachelors can buy the apartment of up to 35 square meters, couples can get loan for purchase of apartment of maximum 46 square meters, while the maximum size of the apartment for a three-member household is 69 square meters. Four-member household can obtain the loan for purchase of apartments of 92 square meters, while additional 10 square meters is approved for every additional member.

Maximum salary of the loan user can not exceed 100,000 RSD, while the age limit for repayment of the loan is 65 years, and the maximum repayment period is 20 years. The clients who decide to buy apartment in this way are obliged to live in that apartment for minimum five years following realization of the loan.

Minimum amount of the loan, which must be insured with the National Mortgage Insurance Corporation, is 10,000 EUR, while the down payment amounts to 20-30% of the value of property. Effective interest rate on the loan with down payment of 20-25% is 6.52% on annual basis, while the effective interest rate on the loan with down payment of 25.01-30% is 6.17% on annual basis.

The loan can be repaid before the expiration of the repayment period with the fee of 1% of amount of the loan, either it is partial or complete repayment.