Pre-Contractual Loan Information

What You Need to Know Before Taking Out a Loan

This is the pre-contractual information, explained simply to help you understand the product, its costs, terms and your rights.

The specific terms of your loan are presented during the application process and in your personalized pre-contractual information document. They are confirmed once your application has been reviewed and approved.

What is a consumer loan?

A consumer loan is repaid in monthly instalments and is intended for individuals with verifiable income who wish to finance personal needs, not business activities.

Loan approval is based on an assessment of:

• your income and expenses;
• your repayment capacity;
• your credit history;
• the information provided during the application;
• Jet Bank’s lending policies.

Is the loan automatically approved after I apply?

No. Successfully submitting an application does not mean that the loan has been approved.

After reviewing your application, the Bank may:

• approve it;
• approve it under different terms from those initially presented;
• request additional information or documentation;
• reject it.

What can I use the loan for?

The loan may be used for personal needs, such as:

• household expenses;
• education;    
• travel;    
• furniture;    
• equipment;    
• healthcare expenses;
• other personal needs.

The loan must not be used to finance business activities.

Is collateral required?

No. No collateral is required for this loan.

Approval is based on an assessment of your repayment capacity and Jet Bank’s lending criteria.

How will I receive the loan funds?

The loan is disbursed into your current account with Jet Bank.

Once disbursed, the funds become available and may be used through:

• bank transfers;
• payments;    
• your debit card;
• other features available in the app.

When do the funds become available?

The funds become available once:

• the application has been approved;
• the conditions required by the Bank have been met;
• the loan agreement has been signed;
• the loan has been disbursed.

Will I receive the full loan amount in my account?

The disbursement fee is deducted once, at the time the loan is disbursed.

For this reason, the net amount credited to your account is lower than the loan principal. However, your principal obligation remains equalto the full approved loan amount.

Example

For a loan of 500,000 ALL:

• the loan principal is 500,000 ALL;
• the disbursement fee is 2%, equal to 10,000 ALL;
• 490,000 ALL is credited to your account;
• the principal obligation remains 500,000 ALL.

What is the interest rate?

The interest rate is the percentage applied to the outstanding loan principal.

The interest rate for this loan is fixed and remains unchanged throughout the term of the agreement.

This means that the rate:

• is not reviewed during the loan term;
• is not linked to a market index or reference rate;
• does not change due to fluctuations in market interest rates.

What is NEI?

NEI is the Effective Interest Rate.

It represents the total annual cost of the loan, expressed as a percentage of the amount borrowed.

NEI includes:

• loan interest;
• the disbursement fee;
• any other mandatory cost directly related to the loan, where applicable.

For this reason, NEI is generally higher than the nominal interest rate.

The specific NEI depends on:

• the loan amount;
• the loan term;
• the interest rate;
• the disbursement fee;
• the number and frequency of instalments;
• the repayment schedule.

NEI is shown during the application process and in your personalized pre-contractual information document. The final value is confirmed in the amortization schedule after the loan is disbursed.

What does the total amount payable include?

The total amount payable includes:

• the loan principal;
• the total interest over the full loan term;
• the disbursement fee;
• any other mandatory cost, where applicable.

The final amount depends on:

• the loan amount;
• the interest rate;
• the term;
• the fee;
• the disbursement date;
• the final amortization schedule.

The specific total amount payable is shown during the application process and in your personalized pre-contractual information document.

How much is the disbursement fee?

The disbursement fee is charged only once, when the loan is disbursed.

For loans of up to 600,000 ALL or up to 6,000 EUR, the fee is 2% of the loan amount.

For loans above 600,000 ALL and up to 4,000,000 ALL, or above 6,000 EUR and up to 40,000 EUR, the fee is 1% of the loan amount.

How is the disbursement fee calculated?

Example for a loan of up to 600,000 ALL

For a loan of 500,000 ALL:

• the fee is 2%;
• 500,000 × 2% = 10,000 ALL;
• 490,000 ALL is credited to your account;
• the loan principal remains 500,000 ALL.

How is the loan repaid?

The loan is repaid in monthly instalments on the date specified in the agreement.

Each instalment includes:

• part of the principal;
• the corresponding interest.

The breakdown between principal and interest is set out in the amortisation schedule.

What is the principal?

The principal is the amount you have borrowed and must repay to the Bank.

Example

For a loan of 500,000 ALL, the initial principal is 500,000 ALL.

As you make monthly repayments, the outstanding principal decreases in accordance with the amortization schedule.

Where can I see the breakdown between principal and interest?

The breakdown of each instalment between principal and interest is shown in the amortization schedule.

The amortization schedule is provided after the loan is disbursed.

Which account is used to pay the instalment?

The instalment is paid from the current account linked to the loan.

On the payment date, you must ensure that there are sufficient funds in the account to cover the full instalment.

What happens if I do not pay an instalment on time?

If an instalment is not paid on the agreed date, the Bank has the right to apply a late-payment penalty for each day of delay.

The penalty rate is 36% per year and is calculated on the unpaid principal and interest included in the overdue instalment or instalments.

The penalty is not calculated on:

• fees;    
• previous penalties;
• accumulated late-payment charges.

How is the late-payment penalty calculated?

The formula is:

Penalty = unpaid principal and interest × 36% × number of days overdue ÷ 365

Example

Where:

• the unpaid principal and interest are 10,500 ALL;
• the annual penalty rate is 36%;
• the payment is 5 days overdue;

the calculation is:

10,500 × 36% × 5 ÷ 365 = 51.78 ALL

The penalty for a five-day delay is approximately 51.78 ALL.

The same formula applies to loans in EUR.

Is there a maximum limit on penalties?

Yes. Penalties and late-payment charges may not exceed, intotal, 30% of the unpaid principal and interest included in the overdue instalment or instalments.

Example

If the unpaid principal and interest included in the overdue instalments amount to 100,000 ALL, the total penalties and late-payment charges may not exceed 30,000 ALL.

This limit applies to the unpaid instalment or instalments, not to the original total loan amount.

What other consequences may result from non-payment?

Non-payment may result in:

• an increase in your outstanding obligation due to penalties;
• the late payment being reported to the Credit Registry;
• a negative impact on your credit history;
• reduced access to future financing;
• repayment requests from the Bank;
• debt collection procedures in accordance with the agreement and applicable legislation.

Can I withdraw after signing the agreement?

Yes. You have the right to withdraw from the loan agreementwithin 14 calendar days without providing a reason.

The period begins on:

• the date the agreement is signed; or
• the date on which the contractual terms are made available to you, if that date is later.

How can I exercise my right of withdrawal?

You must notify the Bank within the 14-day period using adurable means of communication.

Depending on the channels offered by the Bank, notification may be submitted through:

• a request in the app;
• email;    
• another form of communication accepted by the Bank.

The notification must clearly state that you wish to withdraw from the loan agreement.

What must I repay if the loan has already been disbursedand I withdraw from the agreement?

If the loan has already been disbursed, you must repay:

• the principal received;
• the interest calculated from the disbursement date until the repayment date;
• reasonable and documented expenses paid by the Bank to third parties, where applicable.

No penalty is applied solely because you exercised your right of withdrawal.

Can I repay the loan early?

Yes. You may repay the loan:

• in full; or
• in part,

during its term.

In the event of early repayment, the total cost of the loanis reduced by the interest and costs relating to the remaining period.

For partial early repayment:

• the amount may not be lower than the value of one instalment;
• interest calculated up to the repayment date must be paid;
• repayment is carried out on the date and in the manner specified in the agreement and repayment schedule.

Is there a fee for early repayment?

For loans with a fixed interest rate, compensation may apply:

• 1% of the principal repaid early where more than 12 months remain until the end of the agreement;
• 0.5% of the principal repaid early where 12 months or less remain.

The compensation applies only where the conditions set outin the agreement and applicable legislation are met.

In all cases, it may not exceed the legal limits or the Bank’s justified financial loss.

How is the early-repayment fee calculated?

Example where more than 12 months remain

If you repay 500,000 ALL early:

• the fee is 1%;
• 500,000 × 1% = 5,000 ALL.

Example where 12 months or less remain

If you repay 500,000 ALL early:

• the fee is 0.5%;
• 500,000 × 0.5% = 2,500 ALL.

These are illustrative values. The final amount is calculated on the repayment date and in accordance with the agreement.

What is the risk if my loan and income are in different currencies?

If the loan is in a different currency from the currency inwhich you receive your income, exchange-rate changes may increase:

• the value of the instalment in your income currency;
• the total amount payable;
• your monthly repayment burden;
• the risk of repayment difficulties.

This section applies only where the loan currency differs from the currency in which you earn your income.

How can the exchange rate affect my instalment?

Illustrative example

Assume that:

• the instalment is 500 EUR;
• the exchange rate when the agreement is signed is 100 ALL for 1 EUR.

At that time, the instalment is worth:

500 × 100 = 50,000 ALL

If the exchange rate changes to 121 ALL for 1 EUR, the instalment becomes:

500 × 121 = 60,500 ALL

Although the instalment remains 500 EUR, its value in ALLincreases from 50,000 ALL to 60,500 ALL.

This represents an increase of 21%.

When will the Bank notify me about an exchange-rate change?

If, as a result of exchange-rate movements, the value of the instalment increases by more than 20% compared with the value calculated using the exchange rate on the date the agreement was signed, the Bank will notify you through a durable means of communication.

The notification will include information about:

• the percentage increase in the instalment;
• the impact on the total amount payable;
• your right to request conversion of the loan.

Can I convert the loan into the currency of my income?

You may request conversion of the loan into the currency in which you earn your income.

The conversion:

• is carried out using the Bank’s official exchange rate on the conversion date;
• requires a reassessment of your repayment capacity in the new currency;
• is subject to the terms of the agreement;
• is subject to the Bank’s lending policies;
• is carried out in accordance with applicable legislation and regulatory requirements.

How long are the terms presented to me valid?

The pre-contractual information and personalised terms presented after the Bank has successfully completed its assessment of your application are valid for seven calendar days.

If, during this period, you apply again for the same amountand the same term, the Bank will retain the same personalised terms presentedin the first application, provided that:

• the loan linked to the first application has not been disbursed;
• the information provided by you has not changed;
• the data on which the assessment was based has not changed;
• there have been no changes affecting your repayment capacity or the outcome of the credit assessment.

If the first loan has already been disbursed, the seven-day validity period does not apply to a new application.

What happens if I change the amount or the term?

If you change the loan amount or term, a new calculation will be performed and different terms may be presented.

This may happen, for example, if:

• you change the amount from 500,000 ALL to 700,000 ALL;
• you change the term from 60 months to 48 months;
• you change the loan currency.

In these cases, you will receive new personalised pre-contractual information.

What happens after the seven-day period expires?

Once the validity period has expired, the Bank carries out a new assessment.

As a result, the following may change:

• the interest rate;
• the NEI;
• the monthly instalment;
• the fee;
• the total amount payable;
• the approval terms.

What happens if my application is rejected?

If your application is rejected, the Bank will notify you free of charge.

At your request, the Bank will provide the information required by applicable legislation, subject to legal restrictions relating to confidential information, fraud prevention, anti-money laundering requirements and internal assessment models.

Is my information checked against the Credit Registry?

Yes. When reviewing your application, the Bank checks your information against the Credit Registry and other permitted sources.

Information concerning the loan, repayments and late payments may be reported in accordance with legal and regulatory requirements.

Can I receive a copy of the loan agreement?

Yes. You have the right to request a free copy of the draft loan agreement.

This right does not apply if the Bank has decided not to proceed with entering into the agreement.

Where will I receive the pre-contractual document?

Your personalised pre-contractual document will be made available electronically through the channels specified by the Bank.

It contains specific information about:

• the loan amount;
• the term;
• the monthly instalment;
• the interest rate;
• the NEI;
• the fee;
• the total amount payable;
• your rights and obligations.

Can the Bank change the terms of the agreement without my approval?

Changes that have contractual consequences are made in accordance with the agreement and applicable legislation.

Where the consent of both parties is required, the change is made through an amendment to the agreement and must be accepted by both you and the Bank.

How can I submit a complaint?

You can submit a complaint:

• through the dedicated form on the Jet Bank website;
• in the Jet Bank app;
• by calling +355 4 450 7777;
• by emailing info@jet.bank.

How can I contact Jet Bank?

Jet Bank Sh.A.

Rruga Skerdilajd Llagami, Lake Park Central, Building D, 4th Floor, Tirana, Albania

Phone: +355 4 450 7777
Email: info@jet.bank
Website: jet.bank