Modifying Terms
of Existing Loans
On your side when you need us the most.
Delay and Extension of Loan Repayment
In 2008, Erste Bank has established certain measures that can facilitate loan repayment if you find yourself in a difficult financial position due to loss of work, maternity leave or a long-term sick leave. Without paying an additional fee, in Erste Bank branches you can submit a delay request or a repayment extension request, or even combine the two.
Erste Bank always tries to have an individual approach to each client, strives to cooperate with the client and find an optimum solution for each situation, thus enabling the client to cover all contractual obligations.
Your financial abilities have changed due to new circumstances. In order for you to have a peace of mind, Erste Bank is providing you with an option to decrease your monthly loan repayments during maternity/parental leave, long-term sick leave or loss of work.
Your financial abilities have changed due to new circumstances. In order for you to have a peace of mind, Erste Bank is providing you with an option to decrease your monthly loan repayments during maternity/parental leave, long-term sick leave or loss of work.
Delay of loan repayment is a period during which principal shall not be charged, while interest rate is calculated on monthly basis. Delay can be requested* for maximum 12 months during entire loan repayment. It can be used for all loan types, except credit card loans, allowed overdraft and APN loan during first six years.
Delay can be approved for borrowers:
- who have lost their employment (HZZ report must be submitted),
- who have not received their monthly salary on regular basis during last six months,
- who are on maternity/parental leave, or whose spouse is currently using such leave (HZZO report must be submitted), or
- who are using long-term sick leave exceeding 60 days (board report or certificate must be submitted).
Collaterals contracted when signing the loan remain in force when requesting a repayment delay.
Period for Requesting a Repayment Delay
up to 12 months
Fee
No fee
Users of cash, housing, renovation, agricultural, tourism and consumer loans with client status may request* up to five year extension of loan repayment period. Extension cannot be requested for credit card loans, allowed overdraft and APN loan during first six years.
Existing collaterals (e.g., downpayment or insurance policy) must be adjusted to new final repayment deadline.
For above loan modifications, an annex of loan agreement must be drafted and notarized or solemnized. Notarization cost shall be covered by the client.
*Bank handles each client request on individual bases. In order for the request to be approved, required documentation must be submitted, after which the Bank will examine the request. If obligations defined by Bank documents have not been fulfilled, Bank retains the right not to approve the request.
Fixed Or Combined Interest Rates For Existing Loans
We offer existing loan users the option of changing the type of interest rate from variable, linked to the reference interest rate Euribor or NRS, to a fixed or combined interest rate, if the currently valid loan offer includes a fixed or combined interest rate for that type of loan.
Euribor
Bank has no influence over Euribor values, and cannot predict its future changes. Euribor is currently low, but given the numerous factors influencing its value, both increase and decrease of Euribor are possible in the future, which can both increase and decrease variable interest rates that are linked to Euribor.
A fixed interest rate can be chosen for loans with a remaining repayment term of up to 10 years.
If you decide to change the type of interest rate from variable to combined, it will remain fixed for 10 years, and after that it will be variable, for the remaining loan repayment term.
Any change in the interest rate from variable to fixed or from variable to combined is each loan user's individual decision and it should be based on their own assessment of the long-term profitability of such a step.
Conditions for changing the interest rate:
For clients with regular loan repayment
For clients with regular loan repayment
Note: Considering that the addendum (annex) to the agreement and the new promissory note are certified by a notary public, it is necessary to include the costs of certification, i.e. solemnization in accordance with notary tariffs.
Process Of Changing The Interest Rate
(click a specific step for more details)
- Client comes in person to any Erste Bank branch office
- Bank employee identifies the client by checking a personal identification document
- Client signs a request to change the type of interest rate
- Additional documentation is not necessary
- The expected time for receiving feedback on approval and preparation of documentation is up to 10 working days
- The bank, the loan beneficiary and all other participants in the loan sign the addendum (annex) to the agreement and have it certified by a notary public
- All loan participants should sign and certify the new promissory note due to the change in the type of interest rate stated on the promissory note itself
- After certification of the annex to the agreement, all participants are notified of the changed interest rate
- The change is immediately visible to users of George online banking service
- The new annuity/instalment after the changed interest rate is calculated on the 1st day of the month after concluding the addendum (annex) to the loan agreement