Kontinental Bank enters housing loan programme

Serbian Minister of Finance Mladjan Dinkic, Director of the National Corporation for Housing Loan Insurance Aleksandar Jovic and Director General of Kontinental Bank from Novi Sad Zoran Djurovic signed today an agreement on approving housing loans to citizens below 45 years of age.

Kontinental Bank is a member of the Nove Ljubljanske banking group and is the fifth bank to sign such an agreement. Applications can be submitted in all its branch offices as of September 26.

The value of the housing loans to be approved is up to €100,000 with a 10 percent down payment required. The deadline for the payment of 70 percent of the loan given by the bank is 20 years, after which the client pays the remaining 20 percent, given by the state, within five years. The total annual interest rate is 4.5 percent.

Following the signing of the agreement, Dinkic said that the state has set aside 900 million dinars in subsidies towards the purchase of housing by the end of the year. He added that commercial banks who will enter this programme will invest another 2 billion dinars.

The minister said that next year the state will set aside more money and that a real boom in the field of housing loans is expected. In addition, the Law on mortgages is expected to be adopted on October 15, which will allow clients to place mortgages on housing still under construction.

With the aim of subsidising from the budget the purchase of housing only for specific groups of citizens, Minister Dinkic said that the Serbian government and the Ministry of Finance will determine the top limit of salaries for those who apply for such types of loans.