Young people in Serbia between the ages of 20 and 35 can now apply for subsidized housing loans at business banks. Applications can be made at Poštanska štedionica and Banca Intesa, and it is likely that NLB Komercijalna Banka will also join the guarantee scheme for housing loans for young people, as recently stated by Vladimir Bošković, a member of the Executive Board for retail and corporate affairs at NLB Komercijalna Banka. It remains to be seen whether other banks will join and offer favorable loans with government subsidies.
The maximum loan amount is set at €100,000, with a minimum down payment of 1% of the property’s value, though borrowers can opt for a higher down payment. Eligible applicants must be between 20 and 35 years old and purchasing their first property. The government will subsidize part of the interest rate and guarantee 40% of the loan amount for the first ten years of repayment. The interest rate for the first six years is set at 1.5%, thanks to a government subsidy of two percentage points.
Finance Minister Siniša Mali recently mentioned that the guarantee scheme, valued at €400 million, would cover the purchase of approximately 5,500 apartments. This scheme could be expanded to help more young people buy their first home. According to Mali, one of the main criteria for applicants is that they must be between the ages of 20 and 35.
“The down payment is 1%, which, at the average apartment price in Serbia of around €75,000, would be €750,” said Mali.
“The maximum loan value covered by this program is €100,000, and there is no limit to the loan amount. However, for the government, the €100,000 is under these favorable conditions, while any amount above that is subject to market criteria.”
The loan repayment period can last up to 40 years, with a maximum age limit of 70 years at the time of loan repayment. The bank is required to offer a one-year grace period, and the down payment must be 1%. The interest rate for the first year is fixed at 3.5%, with the government covering two percentage points and the borrower paying 1.5%. From the second to the fifth year, the fixed interest rate remains at 3.5%, with the same government subsidy. From the sixth year onward, the interest rate will be based on the three-month or six-month Euribor plus two percentage points.
