Product description
Through Zero Level Loan individuals can be financed for the purchase of a certain asset, based on the agreement the bank might have with a construction company, without the necessity of collateral (excluding some special cases). As collateral, you can provide the home you are buying (which does not have a proper mortgage) using as warrantor the respective company. This way you can profit a new home/shop/office/garage without being the owner of an existing property.
General information
The second level banks usually use as a base rate for calculating the interest rate of the loans, Treasury Bills with 1 year maturity.
"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.
Example:
Treasury bill 1-year interest rate dt. 31.03.2017 is 2.15%
Terms and Conditions
Interest Rates for Zero Level Loan |
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Home Loan/ House Construction Loan +1.5% (changing each 12 months) |
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Loan Maturity |
Up to 25 years or 300 months |
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Maximum Loan Amount |
The bank finances up to 60 % of the property price and not more than predetermined limit in the contract signed among the bank and the construction company. |
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Coverage Ratio |
As collateral, you can provide the home you are buying (which does not have a proper mortgage) using as warrantor the respective company. The sale price (based on the enterprising/order agreement) will be taken as immediate liquidation value for the requested loan. In any case the sale price will at least 167 % of the requested loan. |
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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: |
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If the customer is up to 45 years old, IR will be 0.5% higher |
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If the customer is over 45 years old, IR will be 1% higher |
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Please download the appropriate documentation of Zero Level Loans
Please download the Pre-contractual information form