Loan amount
From €10,000 up to 100% of the budget for the upgrades + additional cash of 2,000€ (the percentage that can be financed, can't be more than to 80% of the estimated value of the pre-noted property as designated by the Bank’s engineer).
Interest rate
The
interest rate varies with the
Euribor 1M
rate plus a fixed spread with a 0.15% discount, set indicatively within a range from 1.40% to 2.55% for the entire term of the loan.
For upgrades to business premises the spread is charged with an extra of 1%.
Loan’s rate spread, is calculated during the loan application assessment according to the Bank's current Credit Policy framework, taking into account factors such as credit history, type of collaterals, loan amount and loan tenor.
On top of Interest rates Levy of Law 128/1975 is charged, currently set at 0.12% for residential properties and at 0.60% for business premises.
The instalment amount may vary, according to the fluctuation of the interest rate of the loan.
In case of skipping
Life & Permanent Total Disability Insurance, the above mentioned rates/spreads may be increased.
Interest rates are also subject to the Law 128/1975 levy. Today it stands at 0.12% for homes and 0.6% for business premises.
INDICATIVE EXAMPLE
For a loan amount of € 100,000€, with property pre-notation, tenor 25 years, thus 300 monthly instalments, floating interest rate of Euribor 1M(3.13% on 31/10/2024), plus margin of 2.55% (plus l. 128/75, 0.12% levy), Application Fee: 0€, Legal check Cost: 50€, Technical check Cost: 150€, the following apply:
Monthly Instalment: 632.13€
Total Credit Amount: 100,000€
Total Credit Cost: 89,905.23€
Total Amount to be paid: 189,905.23€
APR: 5.98%
The APR is calculated based on the assumption that the floating rate will remain at current levels for the entire loan duration.
It is noted that the APR, the monthly instalment and the total repayment amount above are indicated only as an example and arise only if the data mentioned above exist.
Furhermore, the insurance of the pre-noted property against the risks of Fire / Earthquake is mandatory for insured capital equal to the value of reconstruction of the property. It is possible to join a group insurance policy offered by the Bank with an insurance company of its choice or bring an individual insurance policy by an insurance company of your choice, in accordance with the policies and procedures of the bank.
The above example does not include insurance policy costs for the pre-noted property against the risks of Fire / Earthquake and Life & Permanent Total Disability protection of the borrower
Loan term
2 to 25 years.
It is noted that the borrower at the end of the loan tenor cannot exceed the age 75 years old.
Disbursement
In instalments, depending on the quote/pro forma invoice from the contractor and the certifications by the Bank's engineer.
Repayment
In monthly instalments that repay interest, capital and insurance costs
Instalments are debited directly to your deposit account.
Each instalment is paid on the same date of each calendar month and its amount is calculated based on the current interest rate and the number of instalments. The interest is calculated based on a calendar year of three hundred and sixty-five (365) days. The number of instalments is adjusted according to loan tenor selected by the customer.
Failure to fulfil obligations under the loan agreement may have legal or financial consequences for the borrower.
Early repayment
Full or partial early repayment option at any time, free of charge
Collateral
Pre-notation of property.
Insurance coverage
- Compulsory Fire-Earthquake Property Insurance for insured capital equal to the value of the property reconstructing
- Life & Permanent Total Disability Insurance for one of the borrowers, for insured capital equal to the approved loan amount.
- In case of your inclusion for the coverage against the above-mentioned risks in the group insurance policy offered by the Bank, the insurance costs are charged every month along with your loan instalment.
