This is a loan that you can use for the purpose of your choice. You should first study the loan terms and conditions, established by Versobank, and consider all the risks, resulting from taking a loan, before you decide to take out a loan.
Terms and Conditions
- Maximum loan repayment period is 5 years.
- Interest rate 6 month Euribor + margin or the Bank’s Base Interest Rate + margin.
- Contract charges from 1% of the loan amount, minimum EUR 100.
- Real estate and security deposit can be used as principal security. The need for additional security usually depends on the specific loan funded project.
- The security must be appraised by an appraiser, acceptable for the bank. You will be required to ensure the object, used as loan security, according to loan contract terms and conditions.
- Loan will be usually repaid on monthly bases, under annual annuity repayment schedule, meaning that the repayment amounts, with interests accrued, will be equal every month.
- Loan repayments will be executed by the bank, debiting your bank account in Versobank AS by the amount specified in agreed dates.
- Loan servicing payments may not, by general rule, exceed 40% of proven net income of the applicant(s).
Requirements to Loan Applicants and Co-Applicants
- Loan application can be filed by citizens of the Republic of Estonia and citizens of a foreign country who hold a permanent or fixed term residence and work permit and have supplied the bank with evidence, regarding their income.
- Requirements established to natural persons-surety are the same as those applicable to loan applicants.
Expenses Resulting from Taking a Housing Loan
- Real estate appraisal
- Contractual charges
- Notary’s charges and state fees
- Property insurance
The annual percentage rate of a loan for a specific purpose is 5.973% per annum on these sample terms: loan amount € 10 000, variable interest rate 6-month Euribor + 5% per annum (as at 13 June 2014, the 6-month Euribor was 0.326%; the Euribor rate specified in the contract may change every 6 months) and contract fee of € 100, paid upon concluding the contract.
The rate is calculated on the assumption that the loan amount is used in full immediately and that its principal and interest are repaid in monthly annuity payments over 5 years. The rate does not include the costs of collateralisation or insurance.
Assuming the above, the total amount paid by the consumer is € 11 535.33, with a monthly payment of € 190.59 and a total of 60 repayments.
Before concluding a contract, we recommend that you carefully review the terms and conditions of this financial service of the bank and, if needed, consult a specialist at our bank.