OTP Banka Srbija: Agro-Investment Loans Without a Mortgage

OTP banka, for the first time in Serbia, is approving investment loans for agricultural farms for 60 months without collateral or guarantors up to the amount of 50,000 euros

After the most complex integration on the local banking market, finalized in May 2021, the new OTP banka Srbija, offers corporate and retail clients a wide range of universal banking products and services through various digital channels. OTP banka’s factoring, including supply chain financing and agro financing teams and products, are recognized as market leaders with a substantial portfolio, tailor-made approach, effective reach and servicing through SME client clustering around the largest companies operating on the local market. With a proven track record in banking innovations, OTP banka became the first bank in Serbia to start approving investment loans without a mortgage for up to five years through a software platform that can process over 100 requests in just one hour.

OTP BANKA SRBIJA/The author of the photo Nikola Mraković

In terms of products, our SME clients have at their disposal payment services incl. e-banking, cash management, e-commerce, treasury services, short term and long term investment financing, structured lending, agro financing, trade finance services, factoring incl. digital platform for e factoring and custody and capital market services. OTP banka has also developed digital services for SME clients to help them along the way and provide all the necessary support. Our clients can use an e-commerce service, which is a perfect way for businesses to improve their sales by opening a  new sales channel completely online, as well as a Pay by link service for payment by email or SMS regardless of location and online store.

We provide a strong service for significant SME agro client segments with different agro packages and dedicated accounts of registered producers, where clients can choose between several types of loans: working capital loans, investment loans for all-purpose, investment loans for the purchase of agricultural land and real estate. The European Investment Fund has recognized our efforts and granted special conditions of support for such a significant improvement in agricultural financing. For the first time in Serbia, investment loans are approved for agricultural farms for 60 months without collateral or guarantors up to the amount of 50,000 euros. We have developed a fully automated approval process for agro-investment loans with five years tenors and approval time of 30 minutes.


“The total net loans in Q1 2021 amounted to EUR 3.8 billion, thus positioning OTP Banka as a market leader with 16.9% of market share in the loan segment”


Our main approach is to adjust client’s needs with their business model, and to create a tailor-made approach in order to satisfy all stakeholders, minimizing risk profile and maximizing the profitability side. In order to predict and minimize all business, production, interest rate risks or oscillations in fx rates risks, we provide wide treasury products.

Our retail clients have a wide choice of benefits including online cash loan and automatic overdraft renewal, online purchase of travel-health insurance, online standing order and direct debit activation, early credit card debt repayment, use of a phone as a card (with mCard and ApplePay), P2P payment and transferring funds to private individuals by e-mail and phone, and a lot more.


MARKET LEADER IN THE LOAN SEGMENT

During the integration process of 19 months, the Bank achieved excellent business results, fully maintaining its business dynamics and meeting the needs of its customers. Upon generating the annual growth in loans of 15% in 2020 the total net loans in Q1 2021 amounted to EUR 3.8 billion, thus positioning OTP banka as a market leader with 16.9% of market share in the loan segment, and the second-largest bank in terms of asset size with a total of EUR 5.3 billion. OTP banka has the largest number of ATMs in Serbia at 322 locations and more than 200 branches across the whole country.

OTP Leasing Srbija also operates within OTP Group in Serbia, as well as OTP Insurance, which through OTP banka provides life insurance services as an insurance agent.

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