Why banks rejected some borrowers' requests for loan relief

In the first three months of 2026, Serbian citizens submitted requests for loan relief on a total of 2,321 credits, amounting to 2.3 billion dinars. Banks approved 79% of these applications, covering loans valued at 1.9 billion dinars. The remaining 21% of requests were denied, prompting an examination of the reasons behind these rejections.

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The largest number of requests for relief in the first quarter of 2026 was submitted for the reason of job loss, and consequently, the largest number of rejected requests were on this basis - which does not mean that these requests were rejected because of that.

According to the National Bank of Serbia (NBS), banks in Serbia are obligated to offer relief measures to borrowers facing repayment difficulties before initiating forced collection procedures. These measures, outlined by the NBS, can include lower interest rates, payment moratoriums, extended repayment periods, or partial debt forgiveness.

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Based on past practice in complaint procedures before the National Bank of Serbia, it can be observed that one of the more frequent reasons for rejecting requests for relief is the fact that the specific beneficiary had already been granted and applied relief on the same credit in an earlier period.

While the primary reason for submitting a relief request might be job loss, the NBS clarified that this reason alone does not automatically lead to rejection. The denial of a request is based on an assessment of all circumstances specific to each case. A common reason for rejection, observed in complaint procedures before the NBS, is that the borrower had already received and benefited from relief on the same credit in a previous period.

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Also, in a certain number of cases, the lender offered the borrower another type of relief, but the borrower did not accept the offered relief, but insisted on a different type of relief (e.g., full or partial debt write-off).

Another significant factor for rejection is when a lender offers an alternative form of relief, but the borrower insists on a different type of relief, such as a complete or partial debt write-off. The NBS stated that they investigate whether lenders adhere to regulations regarding the processing of relief requests. However, they do not typically assess the correctness of a bank's decision to deny a specific relief request. The overall conduct of lenders is evaluated in control procedures, where banks found to be unjustly refusing relief may face consequences.

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The National Bank of Serbia 'in accordance with regulations, in the procedure following a complaint, examines exclusively whether the lender has adhered to the provisions of the regulations governing the lender's conduct regarding the request and in that procedure does not assess the correctness of that lender's decision not to approve relief, not to approve the requested relief, or to approve a certain relief.'