Security required | - Applicable only for Partially Secured loans (by pledge over cash investments/securities only) and Fully Secured loans (by pledge over cash investments / securities OR by hypothecs).
- For Partially Secured loans (by pledge over cash investments/securities), the bank may apply a margin / capping to the value of the pledged securities, to ensure they cover the required security value.
- For Fully Secured loans (by pledge over cash investments/securities), the bank may apply a margin / capping to the value of the pledged securities, to ensure they cover both the loan amount and one year’s interest.
- Note: These margins represent a conservative adjustment to the collateral’s market value, providing a buffer against market fluctuations and ensuring adequate coverage in the event of default.
- For Fully Secured Personal loans backed by hypothecs on residential or private property in Malta, the loan amount must not exceed 70% of the property's value.
- This loan must be secured by:
- a first-ranking hypothec over the borrower’s property situated in Malta,
- a life assurance policy covering the full loan amount, and
- a buildings insurance policy reflecting the property's replacement cost.
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Representative example
| - Unsecured: Based on a loan amount of €25,000 being made available by BOV at a variable interest rate of 4.75% p.a. (interest margin of 2.30% plus CLBBR of 2.45%).
The APRC** will be 4.90% p.a. and the loan will be repayable over a term of 12 years by 143 equal monthly instalments of €228.10 and 1 final monthly instalment of €220.56. Please note that the final monthly payment is indicative and may differ to reflect the actual amount owed, taking into account the first loan disbursement date, the first loan repayment date, any accrued interest, any prepayments and any lump sum payment/s.
The total sum payable throughout the term of the loan, assuming the variable interest rate remains unchanged for the purposes of this representative example, will be €32,901.36, being capital of €25,000, interest of €7,838.86 and a one time processing fee of €62.50 payable at the initial stage.
- Partially Secured (by pledge over cash investments/securities): Based on a loan amount of €40,000 being made available by BOV at a variable interest rate of 4.75% p.a. (interest margin of 2.30% plus CLBBR of 2.45%).
The APRC** will be 4.90% p.a. and the loan will be repayable over a term of 12 years by 143 equal monthly instalments of €364.96 and 1 final monthly instalment of €352.93. Please note that the final monthly payment is indicative and may differ to reflect the actual amount owed, taking into account the first loan disbursement date, the first loan repayment date, any accrued interest, any prepayments and any lump sum payment/s.
The total sum payable throughout the term of the loan, assuming the variable interest rate remains unchanged for the purposes of this representative example, will be €52,642.21, being capital of €40,000, interest of €12,542.21 and a one time processing fee of €100.00 payable at the initial stage.
- Fully Secured (by pledge over cash investments/securities): Based on a loan amount of €60,000 being made available by BOV at a variable interest rate of 3.50% p.a. (interest margin of 1.05% plus CLBBR of 2.45%).
The APRC** will be 3.59% p.a. and the loan will be repayable over a term of 20 years by 239 equal monthly instalments of €347.98 and 1 final monthly instalment of €331.46. Please note that the final monthly payment is indicative and may differ to reflect the actual amount owed, taking into account the first loan disbursement date, the first loan repayment date, any accrued interest, any prepayments and any lump sum payment/s.
The total sum payable throughout the term of the loan, assuming the variable interest rate remains unchanged for the purposes of this representative example, will be €83,648.68, being capital of €60,000, interest of €23,498.68 and a one time processing fee of €150.00 payable at the initial stage.
- Fully Secured (by hypothecs over residential/private property): Based on a loan amount of €115,000 being made available by BOV at a variable interest rate of 3.95% p.a. (Interest Margin of 1.50% plus CLBBR of 2.45%).
The APRC** will be 4.10% p.a. and the loan will be repayable in 300 equal monthly instalments of € 603.84 over a term of 25 years. The total sum payable throughout the term of the loan, assuming the variable interest rate remains unchanged, will be €182,327.00 consisting of €115,000 capital, €66,152.00 interest and €1,175.00 charges.
Applicable charges on this loan are as follows:
- fully refundable processing fee of €345 (upon publication of deed)
- legal fee of €350
- out of pocket expenses per contracting party €20
- updating of searches fee of €360
- a closing of account fee of €100.
**Note: The APRC is based on the following assumptions:
• that you withdraw the total amount of credit immediately and in full at the start of the credit agreement
• that the fully drawn amount of credit is repaid by monthly instalments inclusive of interest, over the agreed term
• that the interest rate remains unchanged during the term of the loan, and
• that the introduction and revision of any other charges may affect the APRC.
Interest will be charged on an Actual/365-day basis. Each instalment will first settle the interest, and the remaining amount will be applied to reduce the loan amount. |
