Loan against deposit

Loan against deposit

Loan against deposit (lombard loan) is one of the fastest ways to get the funds you require. The basic precondition is a full coverage of the loan with a deposit in the same amount. It can be granted either as a short-term or a long-term loan. A short-term loan is repaid in monthly, quarterly, semi-annual or annual instalment(s) within 12 months.

Lending terms and conditions

Purpose

The loan can be disbursed as follows:

  • payment to the borrower's account (no restricted purpose),
  • directly to the account of the provider of goods/services, based on the issued invoices (restricted purpose).

Loan repayment term

  • Up to 1 year, noting that loan utilisation can be extended for a new period, subject to a tied deposit or a deposit that will be repeatedly tied until the end of the loan repayment period or longer.

Fee

  • 1%, but not less than HRK 500 (if the borrower holds one of the packages intended for MSEs, then 50-100% discount might be applicable)

Security instruments

  • Deposits held by legal entities or natural persons can be used as security. Currency of the loan may differ from the currency of the deposit backing it.