The Bank has designed this product for the clients to buy apartment, house, housing premises, as well as to refinance their housing loans with banks. 

▪ Loan may be approved for creditworthy borrowers who have received at least one salary/pension in a transaction account opened with Zapad banka. 

▪ Creditworthy borrower is a client, who from a half of his /her monthly salary or pension can cover the overall monthly liabilities, including the installment of the loan he/she applies for.

Loan amount in EUR:

Min EUR 15.000 – Max EUR 200.000

Repayment Period:

1 – 120 months

Nominal interest rate annually:

4.00%-9.00% depending on the group the client belongs to and the credit grade.

Fees for the loan approval (once off payment)

0.00%-2.00% depending on the group the client belongs to and the credit grade.

Grace period:

Up to 1 month (the interest is paid in the grace period)

Repayment method: 

Equal monthly installments

Fees for loan repayment partly or closing the loan entirely ( once off payment)

In accordance with the Law on consumers loans

Security instruments:

Fees for loan repayment partly or closing the loan entirely ( once off payment)

Attachment of earnings and/or Permanent order for right of disposal of  the funds in the transaction account; 

2 (two) bills of exchange with the bill of exchange authorization; 

Mortgage on real property assets,  with the minimum Loan-to-Value ratio LTV:

- LTV for commercial premises and housing real property: 1:1,10;

- LTV for urban construction land1:1,50;

- LTV for other types of land 1:2,00.

Real property insurance policy (except for land)  covering the basic types of damage, endorsed and tied in favor of the Bank.

Illustrative example

Loan amount in EUR



Repayment Period

120 months

84 mjeseca

Nominal interest rate annually



Monthly installment



Administration fees (the loan processing expenses, 2 (two) bills of exchange expenses, the Regulatory Credit Registry inquiry expenses) 



Total interest amount



Effective interest rate



Total costs *



Total debt **



* ”Effective interest rate”  or " EIR original abbr. EKS " is a realistically applied interest rate calculated by the methodology prescribed by the Decision on the uniform method of calculating and disclosing effective interest rates on loans and deposits.  EKS expresses the total revenues that the bank charges from the client during approval and repayment of the loan, i.e. the total expenditure of the bank incurred relating to the payments to the client on the basis of the (possibly) received deposit. The calculation is made in a way that discounted monetary inflows are equated with discounted cash outflows that relate to loans and received deposits;

 **Total costs are the sum of interests for the overall repayment period, loan processing fees (1.00%), fees for 2 bills of exchange (EUR 4.00) and the fees for the inquiry in the Credit Registry of the Central Bank of Montenegro (EUR 3.50).    
*** Total debt means the amount of the approved loan increased by the total costs incurred on the basis of the approval for the loan arrangement.  

**** In the above Illustrative example, EKS includes the administration fees (costs-loan processing, 2 (two) bills of exchange (EUR 4.00) and the inquiry in the Credit Registry of the Central Bank of Montenegro (EUR 3.50). The expressed EKS amount does not include the costs of obtaining the real estate folio in the cadastral register (EUR 5.00), the costs of making the statement of lien by the notary public, the property insurance policy for the real estate – the subject to mortgage, a life insurance policy, nor a possible cost of bill of exchange by a guarantor-/ co-debtor, if obtaining this instrument is a precondition for the loan approval.

***** Apart from the above costs, EKS may include other costs relating to additional security instruments which a Client shall pay, if obtaining these instruments is a precondition for loan approval, such as: the costs of registration of pledge over movable assets, receivables, insurance policies for the subject to the pledge etc.

******. The Bank retains the right to ask for the alternative means of security that are assessed as acceptable and in accordance with its business policy.
  • ID card photocopy
  • Request for loan
  • Confirmation statement on employment and earnings amount
  • Consent for making inquiry in 
  • Regulatory Credit Registry
  • Contract, Pre-contract agreement or 
  • Statement on debt status- amount of refinancing
  • Bill of exchange and bill of exchange authorization issued by a Client
  • Bill of exchange and bill of exchange authorization  by Guarantor/Co-debtor (optional)
  • Attachment of earnings issued by Client
  • Attachment of earnings issued by  Guarantor /Co-debtor (optional)
  • Statement on severance payment (optional)
  • Life insurance policy
  • Property insurance policy