Back in the seventies, loans for newly married couples experienced a boom. Flats, kitchens, and different household equipment were the things these couples most often bought for the loan obtained from the state.Read also:Read more
The Fund is to distribute €15 million to newlyweds, who can spend the money on renovation, construction and the purchase of a new home. The application deadline is set for October 31.
However, it is better to apply as soon as possible since the allocated sum may not be enough, said the financial analyst Marián Búlik of the OVB Allfinanz Slovensko firm.
Less strict loans
Marriage loans in socialism had a very low interest rate, and people had to wait months, or even years, to obtain it.
The planned loans will be more favourable than the ones from banks since interest rates will not change while repaying the loan. For example, the first €15,000 will have to be repaid in 15 years with a one-percent interest rate added.
If young married couples apply for more money, the loan maturity will be a maximum of 20 years with a two-percent interest rate.
“Banks can compete today with record-low interest rates,” said Búlik, as quoted by Sme. “Nonetheless, this will be temporarily valid since interest rates on the market will grow.”Read also:Read more
Unlike banks, the Fund can ask for more documents. For instance, couples will have to submit their income statements from the past year, building permits as well as legal proof of property ownership, to name a few.
Just like in the case of bank loans, the state loan is to be secured with collateral. This means the value of a property must be at least 1.3 times bigger than the solicited loan, said Maroš Ovčarik of the Finančný kompas website.
“In this regard, banks are more pro-client,” he added, as quoted by Sme.
As far as other conditions go, these include being under the age of 35 and the length of the marriage has to be at least 12 months upon submitting the application.
Moreover, if a child is born, the couple may be forgiven the installment of €2000. The conditions are very similar to socialism marriage loans.Read also:Read more
First come, first serve
Couples can forward their applications to city councils in the district where they have bought or renovate the property. The council will then register the application and send it to the Fund.
“Applications are considered by the order,” said ŠFPB head Juraj Kurňava, as quoted by Sme.
Therefore, couples seriously considering a state loan are recommended to hurry up.
The decision may take longer than in the case of bank loans. The Fund has 110 days to decide, although applications are reviewed much faster in fact, Kurňava added.
3. Jul 2019 at 13:55 | Compiled by Spectator staff