Product description
Financing through the "Zero Level" product makes it possible for individuals to be financed for a property, based on the relevant agreement that the bank has signed with a construction company, without the need to provide an asset as collateral on the part of the individual (except in cases of special). The house that is to be bought and that is not yet mortgaged can be placed as a guarantee. In this way, you can get a new apartment even without being the owner of an existing property.
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 | Zero Level Loan | ||||||||
| Financing Criteria Loan Amount/Collateral Open Market Value | The property that will be purchased with one of the companies and that is not yet mortgaged can be placed as a guarantee. The sale price (based on the enterprising contract) will serve as the cover value of this loan. In any case, the sale price of the property will be at least 167% of the value of the loan granted. | ||||||||
| Interest Rates for ALL Currency | Salary Paid Customers: 4% fixed for the first year then 1 Y T-Bill + 3% not less than 4% (changing each 12 months) Standard Customers: 4.5% fixed for the first year then 1 Y T-Bill + 3.5% not less than 4.5% (changing each 12 months) |
||||||||
| Interest Rate for EUR Currency | Salary Paid Customers: 4.5% fixed for the first year then 1 Y Euribor + 4% not less than 5% (changing each 12 months) Standard Customers: 5% fixed for the first year then 1 Y Euribor + 4.5% not less than 5.5% (changing each 12 months) |
||||||||
| Loan Term | Up to 25 Years for ALL Currency Up to 25 Years for Euro Currency |
||||||||
| Maximum Loan Amount | Bank finances 60% of the value( sale price) of the property not less than the predefined value in the contract signed between the bank and the construction company. | ||||||||
| Loan Disbursement Commission | 1% of loan amount | ||||||||
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 Zero Level Loan.
Please download the Standardized Precontractual Form.