More favorable loans for procurement of building material at end of month

The approval of loans for procurement of building materials at favorable terms, which will be introduced by the supplemental package of measures of the Government of Serbia, will start at the end of this month. The banks are willing to support the Government's programme, and they are preparing the model of the loan that should be soon offered to the clients.

All those interested in this type of consumer loan should submit the proforma invoice of the company (warehouse) from which they want to buy materials to the bank, then they need to submit the loan request, the proof of permanent employment and the certificate of incomes. The fixed interest rate is up to 6%, while the repayment period is up to five years.

Turnover of building materials dropped this year by 70% against the same period last year. The President of the High-rise Building Association within the Chamber of Commerce of Serbia, Goran Dugandžija, says that this measure of the Government of Serbia is very positive.

- Based on the preliminary information, this measure concerns so-called individual, that is, construction of family houses, but that represents a very small share in the overall construction. Of course, that will be a stimulus for the industry of building materials, but not for the entire building industry. What the state must do in the housing policy is to improve the business ambience for real estate investments because it is the only way for us to get larger offer, that is, cheaper housing space and higher employment rate - said Dugandžić.

According to the Government's plan, 1 billion RSD for consumer loans will be provided by the state, while the banks should approve 20 billion RSD worth of loans and financial leasing for procurement of domestic products - automobiles, agricultural machines, furniture and floor covers, household appliances, building materials and tourist arrangements in Serbia.