This product is approved for the natural persons who need cash for solving a current lack of financial resources and who receive regular monthly incomes. 

 

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

 

▪ A 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.

Amount in EUR:

Min EUR 500,00 – Max EUR 30.000,00


Repayment period:

1 – 120 months


Nominal interest rate annually:

6,00%-12,00%, depending on a group a client belongs to and a client’s credit grade


Fees for the loan approval (once off payment)

0,00%-2,00%, depending on a group a client belongs to and a client’s credit grade


Grace period:

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


Repayment method:

Equal monthly installments


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

In accordance with the Law on consumer 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.


Mortgage on real property assets,  with the minimum Loan-to-Value ratio LTV:

- LTV for commercial premises and housing real property: 1:1,10;

- LTV for urban construction land1:1,50;

- LTV for other types of land 1:2,00.

Real property insurance policy (except for land)  covering the basic types of damage, endorsed and tied in favor of the Bank 

Illustrative example

Loan amount in EUR

20.000,00

30.000,00

Repayment Period

120 months

120 months

Nominal interest rate annually

7,00%

7,00%

Monthly installment

232,22

348,33

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

207,50

307,50

Total interest amount

7.907,90

11.861,98

Effective interest rate

7,48%

7,47%

Total costs *

8.115,40

12.169,48

Total debt **

28.115,40

42.169,48

* “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 costs of obtaining the real estate folio in the cadastral register (EUR 5.00), the costs of making the statement of lien by the notary public, the property insurance policy for the real estate – the subject to mortgage, nor the cost of bill of exchange by a guarantor-/ co-debtor, if obtaining this instrument is a precondition for the loan approval. 

***** Apart from the above costs, EKS may include other costs relating to additional security instruments, if obtaining these instruments is a precondition for loan approval, such as: the costs of registration of pledge over movable assets, receivables, insurance policies on the pledged assets etc.

******. 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)
  • 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 issued by  Guarantor /Co-debtor (optional)
  • Statement on severance payment (optional)
  • Property insurance policy