Product information
Through home equity loan, it is intended to fulfill the personal needs of customers for: loans for the purchase of professional equipment, home furniture, education, health, vacations, purchase of a used car, purchase of debt received from another bank or for other purposes which do not conflict with the Bank's individual credit policies.
General information
Second level banks generally use the 1-year Treasury Bond rate for loans in ALL currency as the base rate for calculating loan interest, while the 1-year Euribor rate is used as the base rate for calculating loans in EURO currency."Treasury bills" - is a negotiable debt instrument with a maturity of up to one year, issued and guaranteed by the Government of the Republic of Albania. Treasury bills are issued in the national currency (ALL) and have maturities of 3, 6 and 12-month.
“Euribor” is a reference rate published by the European Institute of Money Markets, based on the average interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the interbank market.
Example:
1Y Treasury Bill on 31.07.2023 is 3.21%
1 Y Euribor on 31.07.2023 is 4.11%
Terms and conditions
| Terms and Conditions | ||||
|---|---|---|---|---|
| Product Type | Home Equity | |||
| LTV Loan Amount /Open Market Value of the Property offered as collateral | 75% (but not more than the total value specified in the preventive) For collateral type Agricultural Land, the Loan to Value Criteria cannot be higher than 50%. |
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| Interest Rate Formula in ALL Currency | Salary Paid Customers of BKT: 3.5% fixed for the first year then 1 Year Treasury Bill + 2.5% not less than 3% (changing each 12 months) Other Customers: 4% fixed for the first year then 1 Year Treasury Bill + 3% not less than 4% (changing each 12 months) |
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| Interest Rate Formula in Euro Currency | Salary Paid Customers of BKT: 4% fixed for the first year then 1 Y Euribor + 3.5% not less than 4.5% (changing each 12 months) Other Customers: 4.5% fixed for the first year then 1 Y Euribor + 4% not less than 5% (changing each 12 months) |
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| Loan Term | 10 Years for ALL Currency 10 Years for Euro Currency |
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| Maximum loan amount | Up to 6,000,000 ALL / EUR 50,000 | |||
| Loan Disbursement Commission | 1% of loan amount 0% Purchase of Loan from other banks (only in cases when the contract of the loan to be purchased contains early repayment commission.) |
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The customers may choose to have life insurance premium or to take a higher interest rate of the loan. In case he chooses the latter, options are:
If the customer is up to 45 years old, IR will be 0.5% higher
If the customer is over 45 years old, IR will be 1% higher
Please download the appropriate documentation of Home Equity Loan
Please download Pre contractual Information Form Collateralized Consumer Loans Template Document