Refinancing a loan with a new bank in Serbia has become much easier thanks to a new instruction from the National Bank of Serbia (NBS). The process no longer requires the borrower to communicate directly with their old bank. Instead, the new and old banks cooperate directly to exchange all necessary debt information and complete the refinancing.
Borrowers no longer need to obtain a certificate of debt status themselves; they simply authorize the new bank to collect the required data and handle early repayment on their behalf. This measure aims to prevent misuse of refinancing funds and streamline the process.
Who covers interest if payment is late?
If the new bank delays paying the refinanced amount to the old bank, causing interest to accrue, the new bank bears all additional costs. The borrower is protected from any extra charges due to delays or miscommunication. The new bank must also promptly inform the borrower once funds are transferred.
According to NBS rules, if the new bank submits a request before 9 a.m., the old bank must provide debt data by 2 p.m. the same day; otherwise, data is delivered by 2 p.m. the next business day.
Possible costs to watch for
The borrower may incur fees if the new bank transfers the refinanced loan amount first to the borrower’s account, and then the borrower transfers it to the old bank. In such cases, the new bank can charge a commission for the non-cash payment, typically up to 8,000 dinars. Therefore, borrowers should confirm in advance whether the new bank will transfer funds directly to the old bank (usually free of charge) or via the borrower’s account (potentially incurring fees).
