The Serbian central bank is temporarily limiting interest rates on housing loans with variable rates for first time borrowers.
The interest is limited on loans that do not exceed 200,000 Euro for the next 15 months, the National Bank of Serbia (NBS) said in a statement on Monday. It added that banks will not be allowed to charge borrowers to cover the difference in interest rates after the decision takes effect on October 1.
The nominal interest rate for housing loans approved prior to July 30, 2022 can’t exceed 4.08 percent (the weighted interest rate on housing loans set by the NBS on that date increased by 30 percent). That means borrowers will pay 10 to 25 percent less a month. The statement said that all borrowers are protected from higher interest payments.
The NBS also limited the fixed portion of interest on loans approved after its decision takes effect to no more than 1.1 percent up to December 31, 2024 for housing loans with variable interest rates and to 5.03 percent for loans with fixed interest rates.
(Vreme, 11.09.2023)