Loans in the Czech Republic.
GM Finance & amp; Consulting s.r.o. helps in the preparation of loans provided in the territory of the Czech Republic to individuals and legal entities, including foreign citizens.
With our help, you can receive the following types of loans:
Receipt and support of a loan.
We accompany the client during the whole process of issuing a loan. We start cooperation at the very first phase, when only there is a need to receive money and conduct the process until they are issued. It includes:
primary consultation; selection of financing options; preparation of documents in accordance with the requirements of the selected bank (their translation into Czech if necessary); submitting an application and documents to the bank; consultations on contracts; accompaniment in the process of signing the documentation.
We provide further consultations on any issues that have arisen in connection with an already issued loan.
This plays a special role for those who have received a loan for a development project, since after issuing a loan, there are many important issues that require the help of a professional.
We are approached by clients who tried to issue a loan themselves or with other companies and for one reason or another received a refusal or a loan option that did not meet their requirements. We help to correct the situation: we select the proposal that best meets the request and bring the process to its logical conclusion & mdash; delivery of funds. It is very important to understand the wishes and needs of the client and offer the most appropriate to his requests for the option. The main guarantee of success & mdash; it is a combination of a properly chosen lending institution and properly drawn up and submitted documents for consideration.
A separate category consists of foreign citizens who do not reside on the territory of the Czech Republic, who do not have a residence permit or income in the country. Due to the requirements of the Czech National Bank, the supply of banking products for these borrowers is limited, and the requirements for the documents submitted to the bank are quite high. Therefore, professional support and consultation in this situation is often just necessary.
Most of the work we do remotely, without the need for a client in the Czech Republic.
Based on the terms of the loan agreement, you can repay the loan ahead of schedule in full or in part. In case of early full repayment of the loan, you deposit an amount equal to the balance on the loan, and interest accrued at the time of repayment. At partial repayment, you make an amount that exceeds your monthly payment. The loan is not closed in this case, but the repayment schedule changes: either the planned payment or the crediting period is reduced.
I would like to draw your attention to the fact that according to the law that came into force on 1 December 2016, the client has the right once a year to repay ahead of time the loan in the amount of up to 25% of his body, & raquo; without any penalty. The law also provides that in the event of early repayment of a loan related to the sale of a property that is pledged to the bank, after the expiry of 2 years after the conclusion of the loan agreement, the maximum penalty amount is 1% of the amount, but not more than 50 000 CZK.
GM Finance & amp; Consulting s.r.o. provides advice on repayment of loans, which include:
clarifying the bank’s requirements for closing or partial repayment of the loan; verification of the correctness and compliance of documents issued by the bank after the payment of funds; Control of the removal of all encumbrances on the client’s real estate.
In the event of the sale of a property that is a security for a loan, we:
we coordinate the requirements of all parties involved in the transaction: the seller of real estate, the bank & mdash; the creditor of the seller, the buyer and in some cases the lending buyer of the bank; organize the processes associated with the payment of the old and the receipt of a new loan.
Current property offers.
Looking for a similar or completely different option? Contact us and we will find the right offer for you!
35 loans attracted over the past year 15 real estate properties built on credit funds More than 1 000 000 CZK – saving on interest rate from our clients.
Difficulties in obtaining a loan.
The main difficulties that a borrower may face are a mistaken approach to the process of issuing a loan. This may be an incorrectly selected banking institution, an incorrectly drawn up application and, most importantly, incorrectly filed documents. The role is played by the smallest details. Here, experience, knowledge of legal norms and laws, ability to combine the client’s request and its capabilities, as well as the existing situation are important.
It is especially difficult for foreign citizens who do not know the language for good, may not understand the specifics of the banking system of the Czech Republic, and not fully know the norms and requirements of a particular bank.
We lead the whole process of lending & laquo; from A to Z & raquo ;. , we approach each request individually, not fitting to the general template. We are often approached by customers who, for one reason or another, do not go through the standard scheme. For example, foreign citizens without a residence permit; customers who can not show income; people who want to buy real estate at auction or plan to create a new business and do not have seed capital; wishing to take an unearmarked loan. This is not all the cases that we solve.
Contact us and we will find the best solution for you!
Expenses related to credit processing.
The costs associated with the execution of a loan are directly dependent on its type and the chosen lending institution, and their specific list can be brought only after acquaintance with the client’s situation.
In any case, the client will need to pay for the valuation of the property and its further insurance, as it will be the object of providing funds issued by the bank.
In some cases, the client will need to pay commissions for consideration and issuance of a loan.
If it is a question of foreign citizens, translation of documents if they are made in a foreign language may be required. There may also be a need for the presence of a court interpreter when signing contracts.
Questions and answers.
There are several ways to confirm income. If you are employed, you will need to show proof from the employer on the bank’s letterhead, which will indicate the amount of salary. In addition to this, the bank can request an extract from the account for which wages are received. As a rule, we are talking about data for the last half year.
If you are a private entrepreneur or a founder / co-founder of a company, you will be required to submit a tax return on income for the last two years.
It is possible that the borrower owns the property and leases it. The bank will request a contract of ownership, lease and account statements, to which cash is received. This will serve as evidence of solvency.
The approach to confirming the incomes of foreign citizens coming from other countries than the Czech Republic depends on the client’s situation (one option may be confirmation of the payment of dividends in the country of permanent residence of the foreign person).
For how long can a mortgage be issued?
The mortgage is issued for a period of 5 to 30 years.
How is the procedure for registering a property for a property?
Registration of property takes place by submitting an application and a document establishing the ownership (for example, a contract of sale) in the real estate cadastre. According to the law, a seal appears on the property with an indication of the reason for its occurrence (for example, change of ownership), and within 20 days the cadastre does not conduct any changes with the object. This is done in order to notify all bidders of the transaction about the changes that are occurring and thereby reduce the risk of fraudulent real estate transactions. After 20 days, the cadastre makes the required changes.
Is it possible to sell an apartment taken on a mortgage, or even pay a loan ahead of time?
Yes it is possible.
Can a firm get a loan for working capital without a pledge of property?
Yes it is possible. The bank will examine the firm’s activities, its tax reporting and monthly turnover. If a positive decision is taken, the bank will open a credit line. The interest rate will be about 5-7%.
I bought an apartment from personal savings, can a bank give a loan for its security?
Yes it is possible. If the transaction occurred no later than three years ago, the bank may issue up to 85% of the appraised value of the property under its security. It will be a classic mortgage.
If the apartment was purchased earlier, you can take a loan for its security. However, this will already be an un-targeted loan (the so-called American mortgage). Accordingly, there will be higher interest rates.
Is it possible to get a loan to build a house?
Yes it is possible. It will be a mortgage loan. The bank can give out money both for the purchase of a plot of land and for construction. In addition to the standard package of documents, the bank will need to present an estimate, a timetable and a construction permit.
Types of loans.
If you have any questions or would like a consultation, please write to us or call us.
Loans in the Czech Republic.