This is a purpose restricted loan and its funds are paid by transfer from the account of a beneficiary of the loan to the account of a seller according to a pro-forma invoice, pre-contract agreement on sales and purchase and the sales and purchase contract


The vehicle age at the moment of the maturity of the latest loan installment shall not exceed 6 years.

Money shall not be transferred to a natural person's account.


▪ Loan may be approved for creditworthy borrowers who have received at least one salary/pension in a transaction account opened with Zapad banka. 

▪ Creditworthy borrower is a client, who from a half of his /her monthly salary or pension can cover the overall monthly liabilities, including the installment of the loan he/she applies for.


Loan amount in EUR:

Min EUR 500,00 – Max EUR 50.000,00


Repayment Period:

1 – 72 months


Nominal interest rate annually:

6.00%-9.00% depending on the group the client belongs to and the credit grade.


Fees for the loan approval (once off payment)

0.00%-2.00% depending on the group the client belongs to and the credit grade.


Grace period:

Up to 1 month (the interest is paid in the grace period)


Repayment method: 

Equal monthly installments


Fees for loan repayment partly or closing the loan entirely ( once off payment)

In accordance with the Law on consumers loans


Security instruments:

Attachment of earnings and/or Permanent order for right of disposal of  the funds in the transaction account; 

2 (two) bills of exchange with the bill of exchange authorization; 

Pledge on the vehicle,  with the minimum LTV ratio 1:1.20:

Casco insurance policy assigned to and in favor of the Bank 

Illustrative example

Loan amount in EUR

20.000,00

30.000,00

Repayment Period

72 mjeseca

72 mjeseca

Down payment (percentage – of the invoice amount)

20%

30%

Nominal interest rate annually

6,00%

5,00%

Monthly installment

331,46

348,33

Administration fees (the loan processing expenses, 2 (two) bills of exchange expenses, the Regulatory Credit Registry inquiry expenses)

107,50

7,50

Total interest amount

3.897,72

4.827,63

Effective interest

6,36%

5,12%

Total costs *

4.005,22

4.835,13

Total debt **

24.005,22

34.835,13

* ”Effective interest rate”  or " EIR original abbr. EKS " is a realistically applied interest rate calculated by the methodology prescribed by the Decision on the uniform method of calculating and disclosing effective interest rates on loans and deposits.  EKS expresses the total revenues that the bank charges from the client during approval and repayment of the loan, i.e. the total expenditure of the bank incurred relating to the payments to the client on the basis of the (possibly) received deposit. The calculation is made in a way that discounted monetary inflows are equated with discounted cash outflows that relate to loans and received deposits;;

** Total costs are the sum of interests for the overall repayment period, loan processing fees (1.00%), fees for 2 bills of exchange (EUR 4.00) and the fees for the inquiry in the Credit Registry of the Central Bank of Montenegro (EUR 3.50).        
 
*** Total debt means the amount of the approved loan increased by the total costs incurred on the basis of the approval for the loan arrangement.  

**** In the above Illustrative example, EKS includes the administration fees (costs-loan processing, 2 (two) bills of exchange (EUR 4.00) and the inquiry in the Credit Registry of the Central Bank of Montenegro (EUR 3.50). The expressed EKS amount does not include the cost of the pledge over movable assets registration, insurance policy for the subject to the pledge and a bill of exchange by a guarantor-/ co-debtor, if obtaining these instruments is a precondition for the loan approval.  

***** The Bank retains the right to ask for the alternative means of security that are assessed as acceptable and in accordance with its business policy.
  • ID card photocopy
  • Request for loan
  • Confirmation statement on employment and earnings amount
  • Pension check (optional)
  • Invoice, Pro  forma invoice
  • Consent for making inquiry in 
  • Regulatory Credit Registry
  • Bill of exchange and bill of exchange authorization issued by a Client
  • Bill of exchange and bill of exchange authorization  by Guarantor/Co-debtor (optional)
  • Attachment of earnings issued by Client
  • Attachment of earnings by  issued by Guarantor /Co-debtor (optional)
  • Statement on severance payment (optional)
  • Vechicle insurance policy