Subsidized Housing Loans for Young Adults Launched in Serbia
Young Serbians aged 20 to 35 can apply for government-subsidized loans to purchase their first homes starting today.
As of today, young individuals in Serbia aged between 20 and 35 can apply for subsidized housing loans at selected commercial banks.
The participating institutions include Poštanska štedionica and Banca Inteza, with NLB Komercijalna banka indicating a potential involvement in the government-backed scheme for housing loans for young adults, according to a statement from Vladimir Bošković, a member of the Executive Board for retail and corporate affairs at NLB Komercijalna banka.
The extent of participation by additional banks in offering favorable loans with state subsidies remains to be seen.
The subsidy program allows for a maximum loan amount of €100,000, with a minimum borrower contribution of 1% of the property's value, which can be increased upon request.
This initiative targets first-time homebuyers aged 20 to 35. The Serbian government subsidizes a portion of the interest rate and guarantees 40% of the loan amount for the first ten years of repayment.
For the first six years, the interest rate is set at 1.5%, a result of a two-percentage-point subsidy from the state.
Finance Minister Siniša Mali has stated that the loan guarantee scheme, valued at €400 million, aims to facilitate the purchase of approximately 5,500 apartments, with potential expansion to accommodate more young buyers looking for their first property.
According to Mali, an applicant's age must be between 20 and 35 years to qualify for this scheme.
The required minimum contribution of 1% translates to €750 based on the average apartment price in Serbia, estimated at around €75,000.
While the maximum covered loan value under this program is €100,000, there is no restriction on higher loan amounts, which would be subject to market conditions beyond the subsidized terms provided by the government.
Loan terms can extend up to 40 years, but must end before the borrower reaches 70 years of age.
Banks are obligated to offer a grace period of one year alongside the 1% borrower contribution.
Initially, the fixed interest rate is 3.5%, of which the state covers two percentage points, leaving the borrower responsible for 1.5%.
From the second to the fifth year, the same fixed rate applies with continued state subsidy.
After the sixth year, the interest rate will shift to a quarterly or semi-annual Euribor rate plus an additional two percentage points.
The participating institutions include Poštanska štedionica and Banca Inteza, with NLB Komercijalna banka indicating a potential involvement in the government-backed scheme for housing loans for young adults, according to a statement from Vladimir Bošković, a member of the Executive Board for retail and corporate affairs at NLB Komercijalna banka.
The extent of participation by additional banks in offering favorable loans with state subsidies remains to be seen.
The subsidy program allows for a maximum loan amount of €100,000, with a minimum borrower contribution of 1% of the property's value, which can be increased upon request.
This initiative targets first-time homebuyers aged 20 to 35. The Serbian government subsidizes a portion of the interest rate and guarantees 40% of the loan amount for the first ten years of repayment.
For the first six years, the interest rate is set at 1.5%, a result of a two-percentage-point subsidy from the state.
Finance Minister Siniša Mali has stated that the loan guarantee scheme, valued at €400 million, aims to facilitate the purchase of approximately 5,500 apartments, with potential expansion to accommodate more young buyers looking for their first property.
According to Mali, an applicant's age must be between 20 and 35 years to qualify for this scheme.
The required minimum contribution of 1% translates to €750 based on the average apartment price in Serbia, estimated at around €75,000.
While the maximum covered loan value under this program is €100,000, there is no restriction on higher loan amounts, which would be subject to market conditions beyond the subsidized terms provided by the government.
Loan terms can extend up to 40 years, but must end before the borrower reaches 70 years of age.
Banks are obligated to offer a grace period of one year alongside the 1% borrower contribution.
Initially, the fixed interest rate is 3.5%, of which the state covers two percentage points, leaving the borrower responsible for 1.5%.
From the second to the fifth year, the same fixed rate applies with continued state subsidy.
After the sixth year, the interest rate will shift to a quarterly or semi-annual Euribor rate plus an additional two percentage points.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
