Subsidized Housing Loans for Young Adults in Serbia to Begin Registration in March 2025
The Serbian government announces a new housing loan scheme aimed at young residents aged 20 to 35, promising favorable terms.
Young adults in Serbia aged between 20 and 35 will be able to apply for subsidized housing loans starting March 14, 2025, as announced by Finance Minister Siniša Mali.
This initiative is part of a broader government strategy to support first-time homebuyers, particularly young individuals entering the real estate market.
The legislative framework for this loan program, established by the recently passed law on the guarantee scheme and interest rate subsidies, aims to facilitate home ownership among the nation's youth.
During a session of the National Assembly, Minister Mali detailed that the maximum loan amount will be set at €100,000.
Borrowers will be required to contribute a minimum of one percent of the property's value as their own stake, though higher contributions can be arranged if desired.
The repayment period for these housing loans will extend up to 40 years, allowing borrowers flexibility in choosing a shorter duration if preferred, with the final repayment permissible until the borrower reaches 70 years of age.
There will be an initial grace period of up to 12 months post-approval before repayment begins, with a structured payment plan allowing a maximum of 480 monthly installments.
The interest rate is fixed at a maximum of 3.5 percent for the first six years, after which it may transition to a variable rate based on either quarterly or semi-annual Eurobor, plus an additional two percent.
Minister Mali also discussed financial agreements secured through guarantees for loans from international financial institutions, aimed at infrastructure and utility improvements, including the procurement of locomotives and upgrades to energy facilities.
A notable agreement involves receiving €112 million from the European Union under the Western Balkan Plan, intended to accelerate integration into the EU single market, while promoting regional cooperation and connectivity.
In addition to housing loans, the Serbian parliament has on its agenda proposals for free trade agreements with the United Arab Emirates and Egypt.
These agreements are anticipated to enhance Serbia's export conditions, potentially opening access to a market of 2.2 billion individuals.
This initiative is part of a broader government strategy to support first-time homebuyers, particularly young individuals entering the real estate market.
The legislative framework for this loan program, established by the recently passed law on the guarantee scheme and interest rate subsidies, aims to facilitate home ownership among the nation's youth.
During a session of the National Assembly, Minister Mali detailed that the maximum loan amount will be set at €100,000.
Borrowers will be required to contribute a minimum of one percent of the property's value as their own stake, though higher contributions can be arranged if desired.
The repayment period for these housing loans will extend up to 40 years, allowing borrowers flexibility in choosing a shorter duration if preferred, with the final repayment permissible until the borrower reaches 70 years of age.
There will be an initial grace period of up to 12 months post-approval before repayment begins, with a structured payment plan allowing a maximum of 480 monthly installments.
The interest rate is fixed at a maximum of 3.5 percent for the first six years, after which it may transition to a variable rate based on either quarterly or semi-annual Eurobor, plus an additional two percent.
Minister Mali also discussed financial agreements secured through guarantees for loans from international financial institutions, aimed at infrastructure and utility improvements, including the procurement of locomotives and upgrades to energy facilities.
A notable agreement involves receiving €112 million from the European Union under the Western Balkan Plan, intended to accelerate integration into the EU single market, while promoting regional cooperation and connectivity.
In addition to housing loans, the Serbian parliament has on its agenda proposals for free trade agreements with the United Arab Emirates and Egypt.
These agreements are anticipated to enhance Serbia's export conditions, potentially opening access to a market of 2.2 billion individuals.
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