Erste Bank offers tourism loans with a lower interest rate for 4- and 5-star facilities

Zagreb, 23 April 2015 – In the eve of the new tourist season, Erste Bank has offered natural persons in the tourism business dedicated loans intended for renovating existing or building new tourism facilities. Tourism loans may also be used to expand the tourism offer, for instance by building or renovating sport and recreational facilities, buying a boat, or expanding and renovating the existing catering facilities. A fully flexible payment model represents a special benefit, as it is adapted to borrowers’ revenues plan, with monthly, quarterly, semi-annual or annual annuities, as well as a 12-month grace period. As an additional benefit, the bank will provide clients who apply for a loan for fitting four- or five-star facilities with an interest rate lowered by 0.2 pp.

The interest rate is fixed at 6.80% for the repayment period of up to 7 years. Loans with a longer repayment period, up to 15 years, are offered with an interest rate of 12M EURIBOR + 6.00 pp. Depending on the amount, loans are granted with or without a mortgage, with a possible partial cash payment up to 40% for loans without a mortgage and 30% for loans with a mortgage. Loans are granted to the maximum amount of EUR 30,000 without a mortgage and EUR 500,000 with a mortgage, respectively, payable in HRK.

Tourism loans, traditionally granted mostly in Dalmatia, Istria and Kvarner regions, have been on the rise over the past few years. A positive trend was continued in 2015, with a 12% growth in tourism loans in 1Q 2015 compared to 1Q 2014. It is worth noting that in the first three months the number of loans approved in the towns of Krk and Rab alone equalled the total number of loans granted in Istria and Kvarner in 2014.