Methodology on determing the interest rates on loans

Determining the interest rates on loans granted by UniCredit Bulbank

UniCredit Bulbank (the Bank) adopts a policy of introducing to clients all costs related to their loans as well as the algorithm of determining the interest rates on consumer and mortgage loans granted by the Bank.

UniCredit Bulbank applies a single formula, presented below, for determining the annual interest rate on mortgage and consumer loans:

Annual Interest Rate = Basic Interest Rate + flat spread

• The Basic Interest Rate is equal to a market interest rate and a premium.

The Market interest rate (SOFIBOR, EURIBOR, LIBOR, etc.) is determined by the currency and maturity of the loan. The particular rate for each loan (inc. exact dates of picking and entering into force of the rates) is set in the General Terms at which mortgage/consumer loans to individuals are granted by UniCredit Bulbank AD.

The Premium is determined by the Management Board of UniCredit Bulbank and is to be amended by the Bank upon corresponding changes of the legislative framework and/or of the financial environment, and/or arising of other objective circumstances which result in a substantial increase of liquidity costs for the Bank and/or incurred additional costs on granted loans. The objective circumstances are evidenced by official independent sources of market information or normative documents.
The amendment of the premium complies the basic interest rate to the contemporary market conditions. The change in premium value may vary by up to 2 percentage points for each update with the Bank duly notifying its borrowers pursuant to the General Terms.
For non-annuity loans each change in values of the applicable interest rate and the premium, comprising the BIR, results in a change of the BIR value.
For annuity loans, when both market interest rate value and premium value change by over 0.25 percentage points compared to the current BIR, the BIR value is automatically reset.

• The flat spread, as the complementary part of the annual interest rate, is determined in the loan contract of each borrower and remains unaltered until loan maturity.

We kindly ask you to check the General Terms of consumer loans to individuals (in Bulgarian) as well as the General Terms of mortgage loans to individuals (in Bulgarian) granted by UniCredit Bulbank.
 

If necessary, you may also contact a bank employee in a bank office at your convenience.

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UniCredit Bulbank with its registered office in Sofia, 7 Sveta Nedelq Square, with paid in capital of shares BGN 285 776 674, under number 831919536