Surge in Young Applicants for Subsidized Housing Loans in Serbia
As of March 2025, over 1,500 applications have been submitted for a new government-backed housing loan program aimed at young adults.
Interest in subsidized housing loans for young adults in Serbia has seen a significant rise, with the Postal Savings Bank reporting 1,566 applications received by 11 a.m. on March 20, 2025. This initiative follows the agreement signed between the bank and Siniša Mali, the first Deputy Prime Minister and Minister of Finance of Serbia.
The program primarily targets individuals aged between 20 and 35 years.
Demographics of applicants show that youths aged 33 to 35 represent 24% of total applications, while those aged 20 to 22 account for 10%.
Furthermore, individuals aged 23 to 25 comprise 15%, and the age groups of 26 to 27 and 27 to 29 make up 12% and 15% of applicants, respectively.
Notably, 20% of those aged 30 to 32 are also seeking these loans.
Regarding employment status, 55% of applicants are employed on a permanent basis, while 14% are unemployed.
An additional 11% have temporary contracts.
Approximately 18% have a creditworthy guarantor.
Employment sectors reveal that a third of applicants work in the public sector, with 54% employed in private companies.
Among the applicants, 6% identify as entrepreneurs and another 6% as artists.
In terms of loan amounts requested, nearly half (49%) of the applicants are seeking €99,000, which is the maximum loan limit.
Other amounts requested include €90,000 by 10% of applicants, €80,000 by 14%, €70,000 by 10%, and €60,000 by 7%.
The smallest requested amount of €50,000 is sought by 8% of applicants.
Loan repayment terms show that 1% of applicants are opting for a 15-year repayment period and 8% for a 20-year period.
About 34% have chosen a 30-year repayment plan, while 15% prefer to repay over 35 years.
The most common preference is for a 40-year repayment, chosen by a third of the applicants.
In terms of property type, nearly 90% of those who applied are looking to purchase an apartment, while 12% are interested in buying a house.
Regarding property sizes, 44% of young applicants seek loans for properties ranging from 45 to 60 square meters.
Meanwhile, 19% aim for 30 to 45 square meters, 21% are looking for 60 to 75 square meters, and 11% prefer larger properties exceeding 75 square meters.
The program stipulates specific eligibility criteria, including age restrictions—from the age of 20 to just under 36 at the time of application—alongside residency requirements in Serbia.
Additionally, applicants must not have owned property or benefited from a housing loan previously.
Properties eligible for financing must primarily serve as residential spaces, excluding vacation homes.
The minimum required down payment stands at 1% of the property's value.
While being employed is not a strict requirement for loan applicants, those who are unemployed must secure a creditworthy guarantor from their family.
The maximum loan amount is set at €100,000, adjusted to the current exchange rate on the approval date.
Participants in the program can take advantage of a grace period up to 12 months and are subject to a fixed interest rate of 3.5% for the first six years.
The state subsidizes two percentage points of this interest rate, resulting in a net payable interest of 1.5% per annum for the borrowers.
After six years, the interest rate becomes variable, linked to the three or six-month Euribor plus two percentage points.
The Serbian government has allocated €400 million for this initiative, anticipated to support the purchase of around 5,500 housing units.
So far, the Post Office Savings Bank has been the first to accept applications, with additional banks, including Intesa and NLB Commercial Bank, expected to participate swiftly in the program.
The program primarily targets individuals aged between 20 and 35 years.
Demographics of applicants show that youths aged 33 to 35 represent 24% of total applications, while those aged 20 to 22 account for 10%.
Furthermore, individuals aged 23 to 25 comprise 15%, and the age groups of 26 to 27 and 27 to 29 make up 12% and 15% of applicants, respectively.
Notably, 20% of those aged 30 to 32 are also seeking these loans.
Regarding employment status, 55% of applicants are employed on a permanent basis, while 14% are unemployed.
An additional 11% have temporary contracts.
Approximately 18% have a creditworthy guarantor.
Employment sectors reveal that a third of applicants work in the public sector, with 54% employed in private companies.
Among the applicants, 6% identify as entrepreneurs and another 6% as artists.
In terms of loan amounts requested, nearly half (49%) of the applicants are seeking €99,000, which is the maximum loan limit.
Other amounts requested include €90,000 by 10% of applicants, €80,000 by 14%, €70,000 by 10%, and €60,000 by 7%.
The smallest requested amount of €50,000 is sought by 8% of applicants.
Loan repayment terms show that 1% of applicants are opting for a 15-year repayment period and 8% for a 20-year period.
About 34% have chosen a 30-year repayment plan, while 15% prefer to repay over 35 years.
The most common preference is for a 40-year repayment, chosen by a third of the applicants.
In terms of property type, nearly 90% of those who applied are looking to purchase an apartment, while 12% are interested in buying a house.
Regarding property sizes, 44% of young applicants seek loans for properties ranging from 45 to 60 square meters.
Meanwhile, 19% aim for 30 to 45 square meters, 21% are looking for 60 to 75 square meters, and 11% prefer larger properties exceeding 75 square meters.
The program stipulates specific eligibility criteria, including age restrictions—from the age of 20 to just under 36 at the time of application—alongside residency requirements in Serbia.
Additionally, applicants must not have owned property or benefited from a housing loan previously.
Properties eligible for financing must primarily serve as residential spaces, excluding vacation homes.
The minimum required down payment stands at 1% of the property's value.
While being employed is not a strict requirement for loan applicants, those who are unemployed must secure a creditworthy guarantor from their family.
The maximum loan amount is set at €100,000, adjusted to the current exchange rate on the approval date.
Participants in the program can take advantage of a grace period up to 12 months and are subject to a fixed interest rate of 3.5% for the first six years.
The state subsidizes two percentage points of this interest rate, resulting in a net payable interest of 1.5% per annum for the borrowers.
After six years, the interest rate becomes variable, linked to the three or six-month Euribor plus two percentage points.
The Serbian government has allocated €400 million for this initiative, anticipated to support the purchase of around 5,500 housing units.
So far, the Post Office Savings Bank has been the first to accept applications, with additional banks, including Intesa and NLB Commercial Bank, expected to participate swiftly in the program.
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.
