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LOANS, SECURED BY MORTGAGE

(1. consumer loan, secured by mortgage over real property)

1. Purpose of the loan:

• purchase of household goods;
• purchase of automobile;
• refinancing of existing loans;
• home furnishing and improvement;
• 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: – up to BGN 50,000 or the equivalent thereof in EUR, but not to exceed 80% of the market value of the real property, depending on its type and location.

4. Loan term: – up to 60 months.

5. Loan currency: - BGN and EUR.

6. Repayment:

• the loan must be repaid in equal monthly instalments, including interest and principal or
• equal monthly instalments for 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: - BIR +6.52% on loans in BGN and BIR + 5.52% on loans in EUR.

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;
• property insurance in favour of the Bank (at the borrower’s expense) for all relevant insured risks, covering the purchase price.

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:

• first legal charge over a real property, owned by the borrower or by a third person, located in urban residential areas, in regard to which no other rights, opposable in regard to the Bank must be registered, insured in favour of the Bank for the loan term by an insurer, acceptable to the Bank.