Loans


Union Banka approves the following types of loans to individuals and individual entrepreneurs:

• General consumer loans
• Housing loans
• Loans to individual entrepreneurs
• Commission loans
• Loans based on 100% deposit coverage
• Loans to holders of Bank’s cards
  

The terms for approval of loans are that the applicant provides necessary documents, that he is creditworthy and that he provides repayment security instruments.

The creditworthy applicants are persons who are able to make regular payments under the loan agreement. The monthly installment can range between one third and one half of monthly income of the borrower. Guarantors should be equally creditworthy as the borrowers.

Consumer loans

The Bank approves consumer loans for purchase of goods and other purposes:

Housing loans are approved for:

• Construction and purchase of houses and apartments, up to 10 years, up to KM 100,000, and
• Renovation and reconstruction of houses and apartments, up to 5 years, up to KM 30,000

Loans to individual entrepreneurs are approved for a period of up to 3 years, up to an amount of KM 30,000. The security are personal bills of exchange with 2 guarantors, or personal bill of exchange and mortgage or lien or insurance policy or deposit for coverage of a loan.

Union Banka performs commission operations in the name and for the account of individuals, and can approve commission loans to individuals under special terms and special arrangements with individual legal entities, which impact the amount, interest and other terms and conditions of loans.

Loans secured with 100% deposit coverage are approved for a period of time based on the request of the applicant. The amount of the deposit must be equal to the loan amount together with interest. Creditworthiness is assessed based on the amount of deposit.

Loans to holders of Bank’s cards. For details see Cards .

Interest rates for loans to individuals and individual entrepreneurs on an annual basis are:

Consumer loans with a maturity of 12 months Consumer loans with a maturity of 18 months Consumer loans with a maturity of 24 months Consumer loans with a maturity of 36 months Loans for purchase of cars (up to 48 months) Housing loans Loans to individual entrepreneurs with a maturity of 36 months Loans secured with 100% deposit coverage Examples of Effective Interest Rate disclosure:

For detailed information about these loans, please call: 033-561-019, E-mail: stan@unionban.com.ba or dial branch network telephone numbers.