Cash loan secured by mortgage

*The "Effective Interest Rate" or "EIR" represents the realistically applied interest rate obtained through the methodology prescribed by the Decision on the Calculation and Disclosure of the Effective Interest Rate on Loans and Deposits ("Official Gazette of Montenegro," No. 138/21). The EIR reflects the total income that the Bank charges the Client during the approval and repayment of the Loan, or the total expenses incurred by the Bank in connection with payments to the Client for (possibly) received deposits. The calculation is performed in a way that discounted cash inflows are equated with discounted cash outflows related to loans and received deposits. In the specific representative example, the EIR includes the following costs: loan processing fee (EUR 300.00), 2 (two) bills of exchange (EUR 4.00), inquiry to the Credit Registry of the Central Bank of Montenegro (EUR 3.00), cost of obtaining the Real Estate List (EUR 5.00), cost of preparing the mortgage statement (in this specific case, EUR 176.66, including VAT, in accordance with the official Notary tariffs); fee for the Administration for Cadastre and State Property (in this specific case, EUR 31.50, in accordance with official tariffs).

***The total debt includes the approved loan amount increased by the total costs associated with its approval.

Besides stated costs, the ERT may include other costs related to additional security instruments, in case the obtaining of such instruments is the precondition for loan approval, such as: costs of obtaining the evaluation from the official Bank’s appraiser, property insurance policy – subject of the mortgage, costs of registration of the lien over the movable property/claims, insurance policy for the subject of the lien, costs of bills of exchange of the guarantor/co-borrower, etc. in case their obtaining is a precondition for loan approval.

The Bank reserves the right to alternative security interests for which it deems acceptable and in line with its business policy.