NKOSK: The National Corporation for Housing Loan Insurance is a state institution that insures loans approved by banks to individuals for the purchase, adaptation, or construction of desired properties.

By insuring loans, NKOSK provides a guarantee to the bank that it will be able to collect the borrowed funds. The loan user pays a processing fee for the loan insurance application, which amounts to 30 EUR, and an insurance premium that ranges from 1.5-4.25%, depending on the loan amount.

In the event that a client’s housing loan becomes problematic, NKOSK pays the bank up to 75% of the total borrowed funds, while the remaining funds are returned to the bank after the property is sold. The reduced risk for the bank provides an advantage for the loan user – lower interest rates for the loans approved by the bank.

Although as loan holders you are obligated to repay it regularly, NKOSK cannot insure you against the loss of property; it can help you repay housing mortgage loans as an obligation you have towards a specific bank during a certain period that may be financially unstable for you.