Komerční banka offers a new option for early repayment of Flexibilní hypotéka [Flexible Mortgage Loan] free of charge, has prepared an interesting innovation of its mortgage loans for construction, and also cut the minimum rate of interest on mortgage loans to 3.95% effective from 30 August 2010.

The introduction of early repayment of a part of Flexibilní hypotéka is a major change. In respect of loans taken out after 30 August 2010, the currently existing optional increase in instalments has been replaced by the option to pay an extraordinary instalment of up to 20% of the initial amount of the mortgage loan free of charge. This instalment can be paid after paying 12 monthly instalments from the execution of the loan agreement.

As part of the most current changes in September 2010, KB will also respond to the needs of the clients who will use their loans for construction purposes.

“It will be possible to draw on the mortgage loan to the client’s current account, the client need not furnish any invoices, and the limit on these advances is up to five million crowns”, said Monika Truchliková, Deputy Executive Director for Marketing and Business Development at Komerční banka.

The product innovations are accompanied by a special offer of attractive interest rates. As part of the special offer, the minimum rate has been cut to 3.95% p.a. and applies to mortgage loans with a three-year fixed-rate period for which clients will apply between 30 August 2010 and 30 September 2010. KB’s special offer of loans with a three-year fixed-rate period means that the bank wants to meet the needs of a number of clients who regard this fixed-rate period to be the best in view of the current situation on financial markets. The loan agreements to which the special offer applies must be signed by 12 November 2010.

Komerční banka is one of the best run universal banks in Central Europe. It provides comprehensive services to clients in the areas of retail, corporate, and investment banking. The Komerční banka Group’s 8,624 employees serve 2.7 million clients, who can use an extensive network of 395 points of sale throughout the country. Komerční banka currently operates 676 ATMs and almost 989,000 of its clients use one of direct banking channels.

Komerční banka is part of the Société Générale Group, one of the largest banking groups in the euro zone (in terms of market capitalisation), whose 157,000 employees serve more than 32 million individual clients worldwide.