Serbia’s Finance Minister, Siniša Mali, announced that there has been significant interest in subsidized housing loans for young people, with more than 1,800 applications submitted so far.
He also revealed plans to expand the government’s guarantee scheme to include more properties and mentioned that, in addition to the Postal Savings Bank, NLB Komercijalna Bank and Unicredit Bank have joined the program.
Speaking on TV Pink, Mali explained that the guarantee scheme, with a state budget allocation of up to 400 million euros, supports the purchase of 5,500 apartments for young people.
He further noted that he handed over the first four contracts to four young women on Tuesday and emphasized that the subsidized housing loan program for young people is perhaps the most important and best program ever created for the youth.
Mali stated that this fulfills a promise made by President Aleksandar Vučić, who had pledged to introduce an affordable housing credit program for young people, with subsidized interest rates by the state, available to individuals aged 20 to 35.
He explained that in the first year, the monthly payment for the subsidized loan is 93 euros, which is significantly lower than the cost of renting any apartment. From the second to the sixth year, the monthly payment increases to 175 euros, with the state covering 124 euros of that amount each month.
“This is why it’s called a subsidized loan. The borrower, in this case, the young person, pays part of the cost, and the state covers the rest. This is our way of supporting their independence,” Mali said.
He also mentioned that the first four properties signed under the program are located in Subotica, Pančevo, Novi Sad, and Zrenjanin.
“This is another answer to those who claimed that the apartments would only be available in Belgrade, and that no one else would take advantage of the program. This applies to properties across all of Serbia,” Mali concluded.
