Erste bank grants 30% more new housing loans in Q1 2016

Zagreb, 28 April 2016 – In the first three months of 2016 Erste bank has recorded a significant growth in the number of approved housing loans. During this period, the bank has granted a little under 400 retail housing loans worth a total of HRK 90 million. This represents an increase of 30% compared to the total amount of granted home loans in the same period last year, when approximately 225 housing loans were granted, worth a total of HRK 69 million. The average amount of a home purchase or construction mortgage loan was around HRK 360,000. Comparing loans denominated in HRK and housing loans with a currency clause denominated in EUR, the share of HRK loans is around 50%. 

Commenting on the latest trends in retail loans, head of the Retail Division Marko Krog said: "We have identified a rising trend in retail loans last year and it has additionally intensified in Q1 2016. The cash loans market in 2015 has also grown, with a generally increased demand for fixed-interest loans, especially those without a foreign currency clause. We expect that this trend will continue until the end of the year." 

Until 30 June 2016, Erste banka offers more affordable terms for housing loans and its offer is also applicable for refinancing of purpose-specific loans approved by Erste banka, as well as existing loans approved by other banks. These affordable loans will be exempted from the loan processing fee for the new loan application, while the bank will also cover the entire cost of property valuation. In addition to these benefits, the clients also have a possibility of taking out somewhat higher loan amounts so that they have enough funds to cover the cost of exchange differences and public notary costs, while clients who are take out a new loan to refinance an existing loan at Erste banka will be exempted from the early repayment fee.

Erste banka currently offers Eco home loans denominated in EUR come that come with the most affordable interest rate of all Erste banka's home loans. The variable interest rate is set at 4.76%. The maximum amount of an Eco home loan is EUR 500,000, and maturity is 30 years. Eco home loans can be used to finance the purchase of a high energy efficiency home (A+, A, B and C), the construction, annexation and improvement of high energy efficiency homes, the purchase and installation of equipment for the utilisation of renewable energy sources, home improvement projects aimed at reducing energy consumption, heat insulation of housing buildings, and refinancing the costs of the necessary permits, decisions, approvals and documentation required under the regulations governing the energy sector.