Czech building savings banks lend 700 billion CZK

Nearly every fourth property in the Czech Republic has been improved thanks to building savings. A total of 2.2 million loans have been provided by building savings banks, 46% of which were used to finance remodeling and modernization projects.

The data was compiled from building savings statistics for the first quarter of 2015, over the course of which loans were taken out amounting to 9 billion CZK. In total, building savings banks have loaned 707 billion CZK since 1993, the year in which the product first appeared on the Czech market.

„On average, people borrow over half a million crowns. For remodeling and modernization it's just under 300 thousand crowns. The reason for the difference is simple – this type of loan starts out in the tens of thousands of crowns,“ says Jiří Šedivý, secretary of the Association of Czech Building Savings Banks (ACSS).

Data from the building savings sector illustrates that Czechs are investing more and more into their housing, notwithstanding that the prices of building works and materials are not growing very quickly. While ten years ago the average remodeling loan amounted to 177 thousand CZK, this year the amount is more than 100 thousand CZK higher.

„Public opinion surveys have repeatedly demonstrated that quality housing is one of the key values for citizens of the Czech Republic. This is reflected in the desire to invest into housing more than in the past,“ adds Šedivý.

Building savings banks offer the best conditions for unsecured loans on the market. Furthermore, for several years, clients have enjoyed declining interest rates. Currently, building savings banks are offering the lowest interest rates on loans in the history of the product. At present, clients are repaying nearly 750 thousand loans.