Product information
There’s always something you can improve in your home – a small renovation, an essential repair, or a project you’ve been dreaming of for a long time. But your budget isn’t always ready to help you.
The Home Improvement Loan is designed just for you!
With flexible terms and simple procedures, you can bring every idea to life and make your home more comfortable and functional.
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 & Conditions
In ALL Currency:
In EURO Currency:
| Collateralized Retail Loan | Financing Criteria (Loan Value / Investment Value) | LTV (Loan Value / Market Value) | Interest Rate |
|---|---|---|---|
| Home Improvement loan | Not higher than the investment value | First-time buyer up to 85% Second-time buyers or to give for rent up to 80% If collateral type is Unit LTV should be up to 75% |
Salary Paid Customer in BKT: 3% fixed for the first year then 1 Year T-Bill +2% not less than 3% (changing each 12 months) Other Customer: 3.5% fixed for the first year then 1 Year T-Bill +2.5% not less than 3.5% (changing each 12 months) |
In EURO Currency:
| Collateralized Retail Loan | Financing Criteria (Loan Value / Investment Value) | LTV (Loan Value / Market Value) | Interest Rate |
|---|---|---|---|
Home Improvement loan |
Not higher than the investment value | First-time buyer up to 85% Second-time buyers or to give for rent up to 80% If collateral type is Unit LTV should be up to 75% |
Salary Paid Customer in BKT: 3.5% fixed for the first year then Euribor +3% not less than 4% (changing each 12 months) Other Customer: 4% fixed for the first year then Euribor +3.5% not less than 4.5% (changing each 12 months) |
| Loan Term | Up to 15 Years |
| Maximum Loan Amount | Up to 12,000,000 ALL / 120,000 EUR |
| Disbursement Commission | 1% of loan amount 0% for loan purchase in other banks |
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 relevant documentation for Home Improvement Loan
Please download the standardized pre-contractual information sheet.