In recent days, most Montenegrin banks have lowered interest rates by 0,4 to 1,5 percentage points on housing, cash and mortgage cash loans, as well as on loans for pensioners and debts via mobile applications, according to data obtained by "Vijesti" from four Montenegrin banks.
This reduction in interest rates followed an agreement with the Central Bank of Montenegro (CBCG) two weeks ago.
Most of these measures, according to the "News", will be valid until the end of 2024. Banks urge clients to inquire directly with them about the new interest rates and conditions, because not all banks have reduced interest rates on all loans equally.
The CBCG recently agreed with commercial banks on an initiative to reduce interest rates, in order to preserve the living standards of citizens. In addition, the Council of this institution the other day adopted amendments to the Decision on the calculation and presentation of the effective interest rate (EIR) on loans and deposits, which will enable the list of consumer loans to be published on the CBCG website, after which citizens will be able to compare them. As they explained, credit institutions will provide them with data on interest rates for loans, after which they will be published on the website.
"In this way, better information will be achieved for consumers who will be able to, in a simple way and in one place, compare interest rates and choose whose lending services they will use", emphasized the CBCG.
Due to the growth of interest rates, as well as other fees and commissions, Montenegrin banks achieved a total net profit of 146 million euros last year.
Discounts until the end of the year
Crnogorska kommercielja banka (CKB) told "Vijesta" that as of March 20, new price conditions apply for their most popular loans, more favorable than they were before.
For young people under the age of 30, they made a special offer for a housing loan with an effective interest rate (EKS) of 4,72 percent and a repayment term of up to 25 years. They emphasized that their interest rates for housing loans are fixed and that loan insurance is optional. They also pointed out that they offer an EKS of 7,8 percent for cash loans with a maturity of up to six years, but also that these conditions will be valid until the end of the year.
"In a special campaign from March 20 to May 31, we offer a mortgage cash loan with a lower interest rate and a lower commission, i.e. EKS of 6,34 percent, with a one-time loan approval fee of 0,5 percent. The maximum repayment term is 20 years, and loan insurance is not mandatory," said the bank.
The CKB explained that the data on loans is not complete, and appealed to citizens to find out more about bank offers, get information on websites or in branches.
From this week, as they said from "Erste banka", they offered citizens more favorable conditions and lower interest rates, and the action will also last until the end of the year. They pointed out that they have a special loan offer for pensioners, with an interest rate that is 1,5 percentage points lower than the regular one, but also a free insurance policy.
"The maximum loan amount is 12.000 euros, the interest rate is fixed and nominally amounts to 8,49 percent annually. The repayment term is up to 120 months, that is, until the age of 78, while the one-time fee for approval is one percent," said the bank.
They state that they have also prepared cash loans with a mortgage with a combined interest rate, which is fixed during the first five years in the amount of 4,99 percent per year and after that 3,99 percent plus the six-month EURIBOR (price of money on the European market). They explained that the maximum loan amount is 150 euros, and the repayment term is up to 15 years. They also added that users do not pay a fee for loan processing, and that the bank bears the costs of real estate appraisals, notarizations, mortgage registration fees, obtaining real estate listings, promissory notes, inquiries to the Credit Register...
"As of Monday, cash loans with mortgages are available to citizens with a fixed interest rate of 5,99 percent per annum, depending on the client's creditworthiness. The maximum loan amount is 150.000 euros, the repayment term is up to 120 months. Clients do not pay a fee for loan processing, and the bank bears the costs of real estate appraisals, notarizations...", they said from "Erste banka" and pointed out that they will expand the campaign with a special offer of housing loans for young married couples.
Focus on pensioners
According to the institution, "Lovćen banka" corrected the pricing policy for cash loans for pensioners with a life insurance policy and fair loans for pensioners after an analysis.
The application of the amended conditions will apply from April 1 until the end of the year. According to the data they provided, the EKS for cash loans for pensioners will now amount to 9,09 percent instead of the previous 8,02 percent. For "fair credit" for senior citizens, this interest rate was reduced from 10,73 percent to 10,18 percent. In addition, "Lovćen banka" pointed out that until the end of April they have a campaign for a standard cash loan, with the facility that the loan product can be withdrawn without a processing fee, which is why it is 0,4 percentage points cheaper than the regular offer.
"From April 1, the bank will promote benefits on the deposit side with particularly attractive conditions, about which the public will be informed in time. The bank has already offered a free package and card for young people "Yolo", with a gift payment of 25 euros, in order to provide young people with a ticket to the world of financial services", said Lovćen banka.
"Addiko" bank announced at the beginning of the week that they are now offering lower interest rates for the loans they currently give, but also that there will be significant corrections for pensioner loans, because they are the most sensitive category of the population.
They explained that interest rates available to senior citizens are 1,4 percentage points lower than the existing ones, and that the nominal interest rate (NKS) is 9,99 percent. They pointed out that this included a free insurance policy for pensioners, which enabled the approval of this loan up to the age of 78, without guarantors and medical records. They added that the interest rate reduction amounts to 1 percentage point for those who do not receive a pension through this bank.
"This product is interesting for pensioners who do not want to change the current way of receiving their pension and transfer their income through the bank. An additional advantage is provided for requests that arrive via the web channel, in the form of a free loan processing fee. The offer is valid for a loan amount of up to 12.000 euros with a repayment term of up to 72 months," the bank said.
As they said from "Addiko" bank, the conditions are more favorable for a unique loan that allows clients to obtain a loan of up to 5.000 euros through a mobile application, without going to a branch office and incurring additional costs. They emphasized that the regular interest rate for this loan has been reduced by two percentage points, so it will amount to 8,49 percent. Interest rate corrections, as they stated, are valid for both existing and new users, who want to refinance their existing obligations, which will enable them to take on additional debt.
"The interest rate reduction for this type of loan will amount to 0,7 percentage points, and the interest rate itself will depend on the amount of the approved loan and will range from 6,99 percent. The maximum amount that can be approved is EUR 30.000", this bank emphasized, and said that these corrected interest rates are applied from March 25 and that they are just the beginning of the measures that will be implemented within this initiative.
Hipotekarna banka: Additional reduced interest rates on four popular loan products
Hipotekarna banka announced that they joined the CBCG initiative to reduce interest rates and that they continued with the trend of reducing average weighted interest rates on loans granted to individuals in previous years.
"Our bank, in accordance with the recommendations of the CBCG, further lowered its interest rates on four popular loan products. We focused special attention on the most financially vulnerable categories, namely our pensioners, students and unemployed people. The products included in this offer are: Cash loans for pensioners, Framework loan - overdraft intended for pensioners, Cash, dedicated and loans for refinancing liabilities for students and Cash, dedicated and loans for refinancing liabilities for unemployed persons," Hipotekarna banka told Vijesti.
They said that the reduced interest rates, which are reduced by up to two percent depending on the product, will be applied to the newly approved four loan products and will be valid for all those clients who will apply for a loan in the period from March 25, 2024, ending with 31.12.2024. years.
"Citizens can get additional information through our website or in direct contact with our employees," said Hipotekarna banka
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