Product information
Home Equity Loan gives you the opportunity to meet all your personal needs with flexible terms and maximum security. With this loan, you can purchase professional equipment, furnish your home, invest in education and healthcare, plan vacations, buy a used car, consolidate debts from other banks, or fulfill any other purpose that complies with the bank’s policies.
The process is simple and transparent, allowing you to achieve your plans with ease and confidence.
Apply now and turn your ideas into reality!
General information
Second-level banks generally use the 1-year Treasury Bill rate as the base rate for calculating interest on loans in Lek, while for loans in Euro they use the 1-year Euribor rate.“Treasury Bill” – is a negotiable debt instrument with a maturity of up to one year, issued and guaranteed by the Government of the Republic of Albania. Treasury Bills are issued in the national currency (Lek) and have maturities of 3, 6, and 12 months. Auction results for Treasury Bills are announced on the same day of the auction and published on the Bank of Albania’s website:
www.bankofalbania.org
“Euribor, or Euro Interbank Offered Rate” – is a reference rate published by the European Money Markets Institute, based on the average interest rates at which Eurozone banks offer to lend funds to other banks in the interbank market. Information on Euribor rates is published at:
https://www.euribor-rates.eu/ecb-refinancing-rate.asp
Example:
1-year Treasury Bill rate on 31.10.2025: 2.5%
1-year Euribor rate on 31.10.2025: 2.19%
Terms and conditions
| Terms and Conditions | ||||
|---|---|---|---|---|
| Type of product | Home Equity Loan | |||
| LTV (Loan amount/OMV) | 70% | |||
| Financing Criteria (Loan amount/ Investment amount) | Not higher than the investment value | |||
| Interest Rate formula in ALL Currency | Salary Paid Customer in BKT: 3.5% fixed for the first year then 1 Year T-Bill +2.5% not less than 3.5% (changing each 12 months) Other Customer: 4% fixed for the first year then 1 Year T-Bill +3% not less than 4% (changing each 12 months) |
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| Interest Rate formula in Euro Currency | Salary Paid Customer in BKT: 4% fixed for the first year then Euribor +3.5% not less than 4.5% (changing each 12 months) Other Customer: 4.5% fixed for the first year then Euribor +4% not less than 5% (changing each 12 months) |
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| Loan Currency | ALL and Euro | |||
| Loan Maturity | Up to 10 Years | |||
| Maximum loan amount | Up to 6,000,000 ALL / EUR 60,000 | |||
| Loan Disbursement Commission | - 1.5% of loan amount for new customers - 1% of loan amount for existing customers - 0% Purchase of Loan from other banks |
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Customers may choose whether to take the life insurance or accept a higher interest rate. If the customer chooses not to take out life insurance, the options are:
If the customer is up to 45 years old, the interest rate will be 0.5% higher.
If the customer is over 45 years old, the interest rate will be 1% higher.
Please download the appropriate documentation of Home Equity Loan
Please download Pre contractual Information Form Collateralized Consumer Loans Template Document
Caution! Getting a loan has costs. Be well informed before you decide.