BusinessLoansRenovation loan for appartment building

Renovation loan for appartment building

Renovation loan for appartment building with a guarantee offered by the Fund KredEx

Renovation loan for appartment building is meant for renovating the appartment building and financing of works related to improving the quality of life of the residents.

Form of the Loan Application for printing

TERMS AND CONDITIONS

The bank grants a renovation loan for appartment building in accordance with cooperation agreement with the Fund KredEx and based on the terms and conditions established by KredEx to guarantee the Appartment Building Loan (incl. requirements for applicants, extent of guarantee, works to be financed, requirements for insurance of the building), detailed information here.

Loan applicant: appartment association (AA) has been opereted for at least 12 months, there are no debts in utility payments and the AA is continuously solvent. The members of AA have no essential debts for association
Loan amount:in accordance with the extent of works eligible for financing and payment ability of AA. Total monthly loan payment may form up to 85% from the amount to be collected into repair fund
Self-financing:from 0% (renovation works performed within two previous years can be also considered as self-financing)
Interest rate:6 months EURIBOR or the Bank’s base interest, to what will be added risk marginal and fee for KredEx guarantee
Contract fee:up to 1% from the loan amount, minimum 100 euros
Collateral:AA payments in Versobank AS (obligation to perform payments in Versobank AS starting from 50% from the total payments), as an addition guarantee of KredEx 75% from the principal amount of a loan not yet repaid
Grace period:up to 12 months during renovation works
Insurance:insurance of the building to be renovated in the extent of restoration is required during the loan period
Documents to be submitted in applying for a loan: 
 
  • loan application in the bank’s form
  • articles of Association;
  • certificate from the Building Regitstry or an extract from the Land Register regarding the owners of the appartments;
  • the latest annual report;
  • cash-flow report of the last 6 months;
  • statement of account for the last 6 months, confirmed by the bank, in case the loan applicant is not a customer of Versobank AS;
  • report on debts of AA members;
  • certificates from service providers proving non-existence of debts;
  • technical expertise report and/or energy audit and/or building license;
  • economic plan of AA or extract of it related to the planned works.
  • price offers of renovation works;
  • minutes of general meeting of AA (with registration sheet of members), which includes: purpose of the loan, decision on borrowing, maximum amount of the loan, use of KredEx guarantee, cofirmation of economic plan.


The Bank may ask to submit additional documents if necessary.