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CONSUMER LOANS

(1. fast consumer loan, 2. consumer loan, secured by surety and/or pledge of movable objects, 3. consumer loan, secured by pledge of monetary funds)

1. Purpose of the loan:

• funding of current and other needs;
• purchase of household goods;
• purchase of automobile;
• refinancing of existing loans;
• home furnishing;
• others.

2. Eligibility requirements in regard to borrowers:

• Borrowers must be full-aged legally capable individuals, permanently residing in the Republic of Bulgaria, up to 63 years of age for men and up to 60 years of age for women at the time of expiry of the term of the loan applied for.
• Persons, working under indefinite term employment agreements, who are not in a probation period or individuals, deriving their income from economic activity and other activities under service contracts – as sole traders; notaries public; persons in private medical practice; persons practicing liberal professions; persons performing against compensation management and control; craftsperson’s’ activities and other services, based on own labour.
• Regular and stable incomes, which applicants must be able to prove.

3. Amount:

• fast consumer loan – from BGN 400 to BGN 5,000 or the equivalent thereof in EUR;
• consumer loan, secured by surety and/or pledge of movable objects - from BGN 400 to BGN 10,000 or the equivalent thereof in EUR;
• consumer loan, secured by pledge of monetary funds – from BGN 400 to BGN 147 000 or the equivalent thereof in EUR, depending on the security provided.

4. Loan term:

• fast consumer loan – up to 36 months;
• consumer loan, secured by surety and/or pledge of movable objects - up to 60 months;
• consumer loan, secured by pledge of monetary funds – up to the general limit on terms of consumer loans.

5. Loan currency:

• BGN and EUR for consumer loans, except those, secured by pledge of monetary funds;
• BGN, EUR and other currencies for consumer loans, secured by pledge of monetary funds.

6. Repayment:

• loans shall be repaid in equal monthly instalments, including interest and principal or
• in equal monthly instalments of principal and decreasing interest;
• negotiation of a grace period is an option;

available at the Bank’s discretion and depending on the clients’ wishes.
Interest on the loan shall be charged applying a base year of 365 / 360 days.

7. Annual interest rate:

• fast consumer loan - BIR [base interest rate] +11.02% on loans in BGN and BIR+10.02% on loans in EUR.
• consumer loan, secured by surety and/or pledge of movable objects - BIR + 9.02% on loans in BGN and BIR + 8.02% on loans in EUR.
• consumer loan, secured by pledge of monetary funds – the interest rate, applicable to the deposit (payment account, termless deposit) + surcharge of at least 2%.

8. Late payment penalty surcharge – 10%.

9. Fees and commissions: according to the rates of the Bank Tariff, applicable to individuals.

10. Other terms:

• acceptance of direct debit from all accounts of the borrower;
• Life and Permanent Incapacity to Work insurance in favour of the Bank covering the loan amount and term, at the expense of the borrower, from an insurer, acceptable to the Bank and if no security would be available - pledge of movable objects or of monetary funds;
• for loans, secured by pledge of movable objects – insurance in favour of the Bank (at the expense of the borrower), in respect of all applicable insured risks, covering the price of such object.

11. Early repayment – early repayment is allowed in part or in full for all obligations under the loan agreement, without any additional interest, fees and loan costs being payable.

12. Security:

• fast consumer loan – not required;
• consumer loan, secured by surety and/or pledge of movable objects:
  • surety by up to 3 natural or legal persons, following an analysis of their credit standing, including in connection with the number of loans, where they are borrowers and/or standing surety. The number of persons to stand surety shall be determined by the Bank;
  • pledge of movable objects (insured in favour of the Bank for the entire loan term, from an insurer acceptable to the Bank), receivables, securities etc.
• consumer loan, secured by pledge of monetary funds – blocking of monetary funds in the amount of 100% of the loan value + three months’ interest. In the cases of currencies other than EUR and BGN – the figure shall be 110% of the loan value + three months’ interest.