HR
HR
It is common practice that the Bank, in case of non-payment of the loan, attempts to collect payment fromliquid assets of the borrower first, and then through a property (which is in most cases also in the interest of the borrower).
Mortgage loan
If you need a higher amount of cash, for a longer repayment period (up to as much as 20 years*), and you own a high-quality property that is suitable for establishing a pledge, we can offer you a mortgage loan.
A mortgage loan is a long-term loan granted by the Bank to natural persons, and it is specific in that mortgage on immovable property is used as a security instrument.
For loans secured by immovable property collateral (real estate), it must be adequately valued by an appraiser authorized to conduct appraisals in accordance with the positive regulations of Republic of Croatia. The final market value appraisal report must contain at least the elements specified in the document Important elements of the real estate appraisal (listed in the documentation attached to this product).
*The repayment period depends on the client's business relationship with the Bank and the assessment of its credit risk.
Benefits
- higher loan amounts compared to a cash loan
- loan repayment with a fixed interest rate
- the possibility of financing personal projects for which specific purpose loans are not granted
- the possibility of full early repayment of the loan without paying the fee
Arrangement
Yes, the client is required to be solvent (creditworthy) in order to obtain and repay a loan.
Solvency is defined as the ability of the client to obtain a loan and repay it, with interest, within the term stipulated in the loan agreement.
Loan collateral types are a lien (mortgage) over the property in a minimum ratio of 1: 1.5, with a fire insurance policy with a loss payable clause in the favour of the Bank and the borrower’s accident insurance policy. If the value of the property is insufficient, an additional property may be offered.
A debenture and the Seizure Consent of the Debtor will be required for all participants entering into a loan relationship.
This means that the value of the property must be 1.5 times as high as the amount of loan being approved.
Use
It is intended for anyone who can offer a property as a loan repayment security instrument.
- higher loan amounts compared to a cash loan
- loan repayment with a fixed interest rate
- the possibility of financing personal projects for which specific purpose loans are not granted
- the possibility of full early repayment of the loan without paying the fee