Amount in EUR:

Up to EUR 200,000.00 


Repayment period:

Up to 120 months


Nominal interest rate on annual basis:

3,97% - 8,97% 


Loan approval Fee (single payment):

Up  to 2,50% 

Illustrative example

Amount of the credit in EUR

60.000,00

Payment period

120 months

Nominal interest rate (annual)

4,97%

Monthly annuity

635,51

Fee for the loan approval

600,00

Fee for 2 (two) bills of exchange

4,00

Fee for inquiry at the Loan Registry

3,00

Fee for obtaining the Deed of Title

5,00

Fee for drafting the lien statement

254,10

Fee for registration into  Land Registry and State Property Administration

31,50

Total amount of interest

16.376,10

Effective Rate of Interest*

5,43%

Total costs **

17.273,70

Total debt ***

77.273,70

*Effective Rate of Interest or ERT is the realistically applied interest rate achieved through a methodology provide by the Decision on Calculation and Expression of the Effective Interest Rate at the loans and deposits (Official Gazette of Montenegro 138/21). ERT states the total revenues a Bank charges from the Clients when approving and payment of the loans, i.e. total expenditures of the Bank incurred in relation with the payments to the Client under (potentially) received deposit. Calculation is done when discounted money inflows are equalized with discounted money outflows related to loans and received deposits. 
                           
In this representative example, ERT includes the following costs: loan processing cost (EUR 300,00), 2 (two) bills of exchange (EUR 4,00), inquiry into the Loan Registry of Central Bank of Montenegro (EUR 3,00), cost of obtaining the Deed of Title (EUR 6,00), cost of drafting the lien statement (in this particular example EUR 176,66 VAT inclusive, and in line with official Notary fees); cost for the fee for the Land Registry and State Property Administration (in this particular example EUR 31,50 in line with official tariffs).    
                                                                                                                                                                                                                
** Total costs imply the sum of interests for the complete period of loan repayment, fee for loan processing, fee for two bills of exchange, fees for the inquiry at the Loan Registry of the Central Bank of Montenegro, costs of obtaining the Deed of Title, cost of drafting the lien statement; cost for the fee for Land Registry and State Property Administration.


***Total debt implies the amount of the loan granted, increased by total costs under 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.