Geographic position

Banja Koviljaca is situated at the foot of north slopes of the mountain Gucevo, near the river Drina at height of 125 metres above sea level. Banja lies 6 kilometres southwest from Loznica and has a good geographic- traffic position.

The main traffic artery Beograd-Sabac-Loznica-Zvornik-Tuzla-Sarajevo, or the other route Bijeljina-Loznica-Mali Zvornik- Ljubovija-Bajina Basta-Uzice and further to Montenegro's cost, passes through Loznica. The route Loznica-Osecina-Valjevo-Lajkovac leads to arterial road Ibar.

Loznica is the natural, economic, traffic, cultural and touristic centre of this part of Podrinje. Favourable geographic position of Loznica has mild climate as a consequence, with many hot days throughout the year and insignificant variations of temperature.