Erste starts offering HRK home loans

Zagreb, 16 June 2015. – Erste&Steiermärkische Bank d.d. (Erste Bank) is expanding its range of products for citizens by introducing HRK home and renovation loans. The interest rates on HRK home loans depend on the client's credit rating and, keeping in mind the value of the 6m NRS2 for HRK, they currently range from 5.37% to 5.97% for those with the status of client, and between 5.87% and 6.47% for those without the status of client. The interest rates are even lower for the HRK Eco home loans and start as low as 5.07% (6m NRS2 for HRK + 3.80). The loans will be available starting 29 June this year.

The limit on HRK home loans granted by the bank is HRK 500,000, and on HRK renovation loans it is HRK 370,000, with the repayment period of up to fifteen years. Loans with a 10-year repayment period are granted without a mortgage, while loans with a 15-year repayment period require a mortgage with a minimum ratio of 1:1.11 or a mortgage with a smaller ratio and time deposit saavings. The fee for processing loans without a mortgage is 1% of the loan, up to a maximum of HRK 600, and HRK 1200 for loans with a mortgage.

A home loan can be taken out to purchase, build or renovate a home, or to purchase or build a garage, storehouse or parking lot. In addition, a home loan can be taken out to refinance a home loan taken out at another bank, as well as to refinance a payment in advance. ECO home loans can be taken out to purchase a low energy home, to finance a down payment for a home with the ECO home loan without a mortgage, to build, expand or reconstruct a low energy home, to purchase and install equipment for using energy renewable sources, to renovate homes to make them more energy efficient, to add thermal insulation to homes, to refinance the costs of necessary permits, decisions, approvals and documents in accordance with energy regulations.

In the first five months, Erste Bank granted around 400 home loans worth around HRK 133 million to citizens. In terms of the number of granted loans, this represents an 8% increase compared to the same period last year, while in terms of the value of granted loans it represents a 15% increase.