Period of Maximum of Six Years for Repayment of Consumer and Cash Credits to Remain

The period for the repayment of consumer and cash credits that banks will approve to citizens from January 2021 will be six years at the most, as envisaged in the National Bank of Serbia’s rules from late 2018.

These repayment period, as the central bank confirmed for Tanjug, will not change, despite the fact that, in July 2020, the NBS enabled the citizens who had taken out loans to extend the repayment periods by two years.

That was done at the time as a measure of help to the populace due to the pandemic.

They remind that, in order to achieve the desired goal, without majorly affecting the loan market, a reduction of acceptable repayment period was proscribed at the time: eight years for loans approved in 2019, seven years for those taken out in 2020 and six years for the credits to be taken out from January 1, 2021.

The exception are consumer loans for the purchase of motor vehicles, for which the reduction of repayment periods in phases was not envisaged. From January 1, 2019, the acceptable repayment period for those loans is eight years.

The NBS says for Tanjug that the set of measures of the central bank from December 2018 was adopted to the end of inciting the practice of sustainable retail lending in response to what was then an increasingly frequent incidence of non-purpose unsecured retail lending with unjustifiably long repayment periods.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

consumer and cash loan repayment period

consumer loans

cash loans