There are more than half a million beds in private accommodation in Croatia. The number of apartments in just a few years has increased by 25 percent and is constantly increasing. This fact is not surprising at all, since a good part of the economy of our Beautiful is based on tourism. This means that a lot of money is being invested in apartments and holiday homes. Renters to retain their guests need to invest regularly in their accommodation, otherwise they may be overtaken by those who try harder. The financial market follows these developments and offers adaptation credits.
What are Adaptation Credits?
Adaptation loans are intended for the interior decoration or reconstruction of the property. Most banks are on offer, and they include credit houses in their product range. Loans for renovation belong to the type of home loans and in addition to renovating the home, they also relate to the completion of the housing facility and improving the energy efficiency of the property itself, which is extremely important when selling an apartment or house.
Given that they are included in a portion of housing loans, they are characterized by a longer repayment period and a larger amount, which are most often repaid in monthly annuities. As it is primarily about larger figures, banks pay special attention to the creditworthiness of a customer. Creditworthiness implies that the unencumbered portion of the applicant’s salary is at least two-thirds of the average salary. In addition, most banks require a client to be employed on a permanent basis. This reduces the number of people who can apply for adaptation loans at all. Most Croats are employed on a part-time basis and are dismissed by banks as potential clients because they pose too much risk.
Adaptation Credit Insurance Instruments
Renovations and property renovations often exceed the price of the property itself, so that banks need collateral to secure their debts from clients. The most common of these are promissory notes, mortgages, insurance policies, deposits and guarantors. That way, banks can collect their claims if the customer stops paying their debts.
With some banks, certain insurance instruments can even reduce the amount of interest rates and mandatory fees on adaptation loans.
Using a guarantor when raising an adaptation loan can increase a customer’s credit and increase their ability to obtain credit. Guarantor receipts are added to the client’s receipts, so creditworthiness is determined on both receipts.
Adaptation loans on loan houses
In addition to banks and banking institutions, credit institutions also have adaptation loans in their product portfolio. Unlike banks, they do not rely on the creditworthiness of clients when granting a loan, but make sure that the client regularly settles his debts and has a proper income. It is important that the client has a good financial picture regardless of the type of employment. This is most appreciated by the part-time employees who have been rejected by the banking institutions because they create too much risk.
The best choice are credit institutions licensed by the Croatian National Bank because they operate legitimately and always leave a written mark. They always sign a loan agreement that prevents any doubts when paying back their debts. Loan companies that hunt in turbid, pay money on their hands and do not sign contracts. You should be very careful with this, no matter how urgently you need the money.