Interest Methodology for Loans

UniCredit Bulbank is following the policy of publishing and informing the customers about all loan fees and commissions and for the model of forming the Loan Interest rates the bank is offering.

Determining the Interest Rates on Loans Granted after 23 July 2014

UniCredit Bulbank work with single formula for determining the Annual Interest Rate for mortgage and consumer loans: 

Annual Interest Rate = Referral interest rate + fixed (non-floating) margin


The annual interest rate is formed by the floating market interest rate index (BGN-SOFIBOR, EUR-EURIBOR, USD-LIBOR) applicable to the respective period of interest accrual as per the Agreement and the agreed fixed (non-floating) margin.

Referral interest rate

The referral interest rate is market interest rate index for the different currencies – BGN - SOFIBOR, EUR -EURIBOR, USD, GBP, CHF - LIBOR USD, GBP, CHF.

  • For overdrafts – with one month tenor - 1М SOFIBOR, EURIBOR, LIBOR USD, GBP, CHF
  • For mortgage and consumer loans with prepayment plans – with three month tenor - 3М SOFIBOR, EURIBOR, LIBOR USD, GBP, CHF

The exact days for defining and validity of the new rates of the market interest indexes are described in the General Terms and Conditions.


Fixed margin

The second component of the annual interest rate is fixed (non-floating) margin, which is written in the loan agreement.

Please read the full text of the General Terms and Conditions for Provision of Consumer Loans to Individuals by UniCredit Bulbank AD.

Determining the Interest Rates on Loans Granted before 23 July 2014

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


Basic Interest Rate

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.

Change in the premium

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.

Flat spread

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.


If necessary, you may also contact a bank employee in a branch of UniCredit Bulbank at your convenience.