Eurobank EFG has signed the Contract with the Ministry of Economy of Republic of Serbia and the National Mortgage Insurance Corporation, and the realization of new subsidized mortgage program officially started in this bank on October 1st.
Mortgage loans from the Government's latest program in Eurobank will be interest-free for all citizens prior to October 31st, 2012. Starting November 1st, 2012, the users will continue repayment of the loans at the annual interest rate that is calculated as six-month Euribor + 4.9%. The interest rate that is calculated on the share of the loan that is financed from the budget of Republic of Serbia (down payment of 20%) amounts to 0% on annual basis.
All those interested in this type of loan should provide minimum down payment of 5%, the state will provide 20%, while Eurobank EFG provides remaining 75%.
The maximum amount of mortgage loan that will be granted through this program in Eurobank is 75,000 EUR, while the state will set aside maximum 20,000 EUR for purchase of all types of residential space (houses, apartments and properties under construction). The subject of mortgage for this type of loan can be either registered or unregistered property, under the condition that all legal-formal conditions are met.
The loans will be approved to the citizens who are younger than 45 and have nowhere to live, and whose monthly net salary does not exceed 120,000 RSD. The repayment period for the loans is 30 years, and subsidized part of the loan (20%) is repaid during the last five years of the repayment period. This type of subsidized loans will be available only as indexed in EUR.
Eurobank EFG is the second bank in Serbia in total number of granted mortgage loans, and its share in total number of loans approved by the National Mortgage Insurance Corporation exceeds 10%.