Maturity

The maturity of a loan should be commensurate with its purpose and the collateral. It helps the borrower avoid excessive debt. It also reduces the risk of rising household indebtedness.

Limits

The maturity of an unsecured loan may not exceed eight years. Most such lending is the form of consumer credit. The maturity of a secured loan may not exceed 30 years. Only housing loans fall into this category.

Exemptions

For up to 10% of new housing loans, the maturity may exceed 30 years
Certain unsecured loans provided by home savings banks may have a maturity of up to 30 years
Under Slovakia’s recovery and resilience plan, consumer credit granted for the energy-saving renovation of single-family houses can have a maturity of up to ten years

Housing loans are to be repaid in equal monthly instalments or faster.

Additional exemptions concerning repayments
- A lease with a down payment of at least 20% may be repaid on an annual basis
- Special situations may be are subject to additional exemptions

Legislation

The statutory framework comprises the Housing Loan Act and Consumer Credit Act.

In addition, Národná banka Slovenska has laid down detailed provisons on the maturity limits in the Housing Loan Decree (in Slovak language only) and Consumer Credit Decree (in Slovak language only).

Further information can be found in financial stability legislation.