Product Description
When you take out a Mortgage Loan, during the duration of the loan, the borrower faces periodic changes in interest rates (as a result of changing Treasury Bill rates), therefore facing different payments every year. Often times, these changes create unpleasant financial situations when there is an increase in Treasury Bill interest rates and to help borrowers in this process, BKT offers an alternative mortgage product such as the Flexi Mortgage Loan.
This product gives the borrower the opportunity to determine the monthly installment in the first year of the loan, and then keep it unchanged throughout the maturity of the loan. Depending on changes in Treasury Bill interest rates, the maturity of the loan will change each year so that the loan installment remains the same
Standard Customer: 1 Year Treasury Bill +2%
| Interest Rate | Loan Amount/ Outstanding | Monthly Instalment | Maturity (months) | |
|---|---|---|---|---|
|
1st year |
5.21% |
ALL 5,000,000 |
ALL 46,773 |
144 |
|
2nd year |
5.71% |
ALL 4,675,508 |
ALL 46,649 |
150* |
* To keep the same monthly instalment the loan maturity will increase to 150 months from disbursement date.
Standard Customer: 1 Year Treasury Bill +2%
| Interest Rate | Loan Amount/ Outstanding | Monthly Instalment | Maturity (months) | |
|---|---|---|---|---|
|
1st year |
5.21% |
ALL 5,000,000 |
ALL 44,773 |
144 |
|
2nd year |
4.71% |
ALL 4,675,508 |
ALL 46,538 |
140* |
The maximal interest rate in which the changes in the loan maturity can be executed depend on the category of the product.
General Information
Second level banks use as a base interest for the calculation of the loan interest rate formula the 1 Year Treasury Bill rate.
"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 (Lek) and have maturities of 3, 6 and 12-month. www.bankofalbania.org.
Example:
Treasury bill 1-year interest rate dt. 28.02.2023 is 4.28%
“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. https://www.euribor-rates.eu/ecb-refinancing-rate.asp.
Example:
Euribor interest rate dt. 28.02.2023 is 3.68 %
Terms and Conditions
| Terms and Conditions | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Product Type | Home/House Construction Loan/ Flexi | ||||||||
| Financing Criteria Loan Amount/Collateral Open Market Value | 75% | ||||||||
| Interest Rates for ALL Currency | Salary Paid Customers: 1 Y Treasury Bill + 1.5% not less than 2.5% (changing each 12 months) Standard Customers: 1 Y Treasury Bill + 2% not less than 3% (changing each 12 months) |
||||||||
| Interest Rate for EUR Currency | Salary Paid Customers: 1 Y Euribor + 2.5% not less than 3.5% (changing each 12 months) Standard Customers: 1Y Euribor + 3% not less than 4% (changing each 12 months) |
||||||||
| For collateral type Agricultural Land, the Loan to Value Criteria cannot be higher than 50%. | |||||||||
| Loan Term | Up to 12 years from disbursement date, changing up to 25 years for ALL currency according to the fluctuation of 1 Year Treasury-Bill. Up to 12 years from disbursement date, changing up to 25 years for ALL currency according to the fluctuation of 1 Year Euribor. |
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| Maximum Loan Amount | Up to 50,000,000 ALL / EUR 400,000 | ||||||||
| 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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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 respective documentation for Home/House Construction Loan/ Flexi.
Please download the Standardized Precontractual Form.