Non-bank loans: Loan from the Loan and Credit
You can get 250 thousand – 5 million crowns (up to a maximum of 50% of the estimated price of the property. The advantage is to provide a loan without a register and without proof of income (the mortgaged property serves as a repayment guarantee)
Terms of the loan from the Loan and Credit
The amount of this non-bank loan can range from USD 250,000 to 5,000,000. The maturity can then be 6 – 60 months (0.5 – 5 years). The basic minimum interest rate for this loan is 6.9%.
The basic conditions include a minimum age of 18 years, citizenship of the Czech Republic (or at least permanent residence in the Czech Republic). It is also necessary to provide proof of identity and documents for the property, which will be used as a guarantee for the borrowed money.
Fees for this loan
For the approval of the loan the savings cooperative charges an amount of 0.9% of the loan amount. At least it is 2250 USD, maximum 45000 USD. No further fees are required. The Loan and Credit does not charge any loan maintenance fee, you only pay regular installments of the loan amount and interest.
Early repayment of the loan is free of charge. Unlike banks, however, the Loan and Credit does not offer the possibility of insurance against the inability to repay. You might have to take out this insurance yourself with another company.
Who is the loan for?
The loan from the Loan and Credit is not only for members of this savings cooperative, but for all interested parties. By its nature, this loan is intended rather for ordinary citizens who want to borrow money for a long time. This loan has similar parameters as American mortgages offered by some Czech banks.
Here too, real estate loan collateral is required. Unlike a bank American mortgage, candidates at the Moravian Banking Institute have a chance to raise money, even if they refused it at the bank.
The savings bank cannot consult the banking register of client information, and even some of its other conditions offer more favorable criteria. So if the bank refused to give you an American mortgage, you can try this loan offered by the Loan and Credit.