Up to 100,000 euros under subsidized conditions
Terms and conditions of housing loans for youth
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Minimum down payment of 1% of the purchase value of the property that is the subject of purchase and collateral.
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Nominal interest rate:
- 1.5% fixed for the first 6 years
- 2% + 6M Euribor variable for the remaining loan period
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Repayment period: 15 to 40 years.
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Grace period from 0 to 12 months, with monthly interest payments.
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Age: 20 to 35.
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Without the costs of registering a mortgage, issuing a real estate certificate, verifying the mortgage statement and initial real estate appraisal.
Representative examples and conditions
Representative example
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Representative example of a housing loan for youth with interest subsidy from the Republic of Serbia
*For the calculation of the EIR and the amount of the monthly installment, the 6M Euribor on 07.05.2025 was used and amounts to 2.15%. **Costs charged in EUR are calculated in dinar equivalent at the middle exchange rate of the National Bank of Serbia. The costs that are borne by the user, and known at the time of advertising, are defined based on the recommendations of the Association of Banks of Serbia. The Bank disburses housing loan funds at the middle exchange rate of the NBS on the date of transfer of funds. Repayment of loan obligations is made using the middle exchange rate of the NBS on the date of collection. Understanding makes a difference: borrowing money costs money. |
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Frequently asked questions
Who can apply for Youth Support loans to purchase their first apartment?
- Young people aged 20 to 35 can apply for these loans.
- In addition, they must be citizens of the Republic of Serbia and have a permanent residence in the Republic of Serbia.
I. Conditions related to residential real estate
First residential property means that up until that moment you did not own residential property nor were you a beneficiary of a housing loan.
II. Conditions related to employment and income
The loan can be used by:
1. Permanent employees
2. Independent artists
3. Temporary employees (with additional provision of a family member's guarantee)
4. Unemployed (with the guarantee of a family member).
III. Credit history
Citizens with a good credit history as of January 1, 2024.
How much is the down payment for this type of loan?
The minimum down payment is 1% of the value of the residential property (for a loan of 100,000 euros, the down payment is 1,000 euros).
Do I have to be employed?
The beneficiary does not have to be employed. If you are not employed, you can still apply for a loan, but you must provide a joint and several guarantee from a third party. The guarantor-payer must have sufficient funds to repay your monthly loan obligation.
Is there a limit to the amount of the loan, or the price of the apartment?
The maximum loan amount is limited to EUR 100,000 in dinar equivalent at the official middle exchange rate of the National Bank of Serbia on the day the loan is approved. The price of the residential property is not limited.
Is there a grace period and the possibility of early repayment of the loan?
The grace period lasts a maximum of 12 months from the date the loan is approved and disbursed. At the request of the borrower, the grace period may be shorter or waived entirely. Early repayment of the loan is permitted in whole or in part, without charge, at any time.
What is the interest rate?
1. Interest in the first six years:
- Fixed interest: 3.5% per year
- Subsidy: The state subsidizes 2 pp interest rates
- Interest paid by the user: 1.5% per year
2. Interest after six years:
- Variable interest rate: 2.0% + 6m Euribor
What is the loan repayment period?
- Maximum repayment period: The loan can be repaid over a maximum of 40 years (including a grace period of 12 months).
- The minimum repayment period is 180 months. You can also choose a shorter repayment period, according to your financial capabilities.
- Loan repayment must be completed by the borrower's 70th birthday.
What is considered residential real estate that can be purchased with this loan?
Residential real estate is considered to be a house, an apartment and parts of a residential building intended for housing, a garage or a garage space if it is together with an apartment, as well as land with a building permit for the construction of a house, with the exception of weekend houses. The real estate must be intended for housing, and it cannot be leased or alienated for a period of six years after the loan is approved.
Is it necessary for the property to be registered?
Yes. When it comes to existing buildings (old and new buildings), the property purchased with this loan must be registered (the property must be registered in the cadastre and have a valid real estate certificate. The loan is secured by a mortgage on the property, which requires the property to be registered). For buildings under construction, residential properties that are eligible are:
- In a building under construction where the bank or the Republic of Serbia is financing the construction and over which it is possible to establish a mortgage
- Part of the building under construction as part of the project financing of that bank
- Part of a building under construction as part of project financing from another bank, where the degree of completion of that building is at least 60%
- Part of a building under construction for which the Construction Directorate of Serbia is the holder of the building permit
- Part of a building under construction as part of state support measures for certain categories of individuals.
If an interested party meets all the requirements, but is married to a spouse who owns the property, can they apply?
According to the Law, a beneficiary can apply for this loan even if they are married to a spouse who owns real estate. The condition is that the beneficiary of the loan does not own residential real estate, nor is he/she a beneficiary of a housing loan.
Is the purchase of an apartment with this loan subject to a VAT refund for the first property?
The purchase of an apartment with credit support for young people is subject to a VAT refund for the first property, if the legally prescribed conditions are met.
Can I apply for the Program if I have a bank loan, but which is not a housing loan?
You can, if you meet your bank's requirements for creditworthiness.
Are there any costs for submitting this request?
- There are no loan processing fees.
- There are no costs for registering a mortgage and issuing a list of real estate to the Republic Geodetic Authority.
- There are no costs for notarizing the mortgage statement and notarizing the real estate purchase and sale agreement.
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