Housing loans

Housing loans are specific loan programs launched through cooperation with investors specialized in housing investments. Housing loans are used to identify a specific target group - housing clients - individuals with the need to reconstruct and adapt their housing units. Also, housing loans are used to increase the energy efficiency of client’s homes.



  LOK HOUSING 1
Loans used to invest in home improvement, reconstruction, adaptation, building, and to purchase house or flat.

Maximum loan amount: 10.000 KM *
Loan tenure: 60 months
Grace period: 3 months (grace period is involved in a specified loan term)
Provizija: 3%
Nominal Interest Rate (NIR): 24,00% per year
Effective Interest Rate (EIR): 28,69% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.




  LOK HOUSING 2
Loans used to invest in home improvement and adaptation in order to increase the energy efficiency (funding is used for window replacement, thermos isolation, installation or improvement process heating system performance, roof repairmen, etc.)

Maximum loan amount: 10.000 KM *
Loan tenure: 60 months
Grace period: 3 months (grace period is involved in a specified loan term)
Provizija: 3%
Nominal Interest Rate (NIR): 21,60% per year
Effective Interest Rate (EIR): 25,65% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.