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Small village Banja Loka is placed on a plateau between the Kolpa valley and the Koevje valley, through ffentliche Strae G2-106 Ljubljana Petrina (Brod well Kupi Croatia).  The distance from Kočevje to Banja Loka is 20 km., distance to Croatian boarder is 10 km.

The most important cultural and historic monument in Banja Loka is church St. Jacob that was constructed in 1742.  Church was painted of local painter Fabjan and paintler Ivan Šubic of Škofja Loka in 19th century. 

Between Banja Loka and river Kolpa, is the Kostel castle.  The castle was firstly mentioned in 1336 and had an important strategic function in this area, when it was used as a military post against Ottoman invaders and robbers.  It was the biggest one in the region. Now the castle serves a symbol the Kostel valley and young community Kostel.

Between villages Banja Loka and Kostel castle is village Podstene, with church Holy Spirit from the 17. century.  Near the the village is an interesting Lukova Cave.  Under Kostel castle  village Žaga with water wall on the Kolpa river and some more Karst Caves. Over Banja Loka there is a peak Stružnica with some more scenery view on the river Kolpa. 

Because of its remoteness, the zone of Banja Loka and the Kolpa valley is a primeval paradise of peace and silence.