Loznica is located between Cer and Iverak on the north and northeast, Vlašić on the east, Gučevo, Kostajnik and branches of Boranja on the south, and it is opened to the west and northwest. The city of Loznica topographically resembles a huge amphitheater – giant horseshoe, sheltered from cold north and east winds with mountains and their branches. Loznica with its environment presents a kind of oasis of regional climate, so it significantly differs from climates of the neighboring regions. The average annual air temperature in Loznica is 11º C, the real duration of sunshine (effective insolation) is annually 2041 hours, the average of annual excreted rainfall is 800-1000 mm and ferocity of the wind is relatively small 282 ‰. Considering the indicators, the climate of Loznica and its environment can be defined as very suitable.
Loznica is rich in water resources, which are made of surface waters – rivers, underground waters, ordinary and thermo-mineral springs. The most important are: Drina, Jadar, Lešnica, Žeravija and Štira. The most powerful springs of the urban area are linked to the fissures where waters from depth and with spacious feeding areas break into surface. Among them the most powerful spring is the spring of Tronoša monastery, with maximum yield of 5,5 l / s. It is capped into drinking fountain called “Devet Jugovića“ (“Nine Jugović Brothers“) with ten “pipes“ from which are rising strong jets of cristally clean cold water. This spring is a real jewel and a specific natural and culturally-historical monument. Water resources and its diversity on the urban area are complemented by water of thermo-mineral springs. The emmergence of these springs is linked to numerous fissure lines, as well as to an earlier poor volcanic activity.
The most important are waters of Banja Koviljača, which occur in several springs, and acoording to the content of dissolved chemical elements these waters are classified as alkaline-muriatic, ferrous and sulphurous. The latest researches show that the water of Banja Koviljača is a type HCO3, NaCl, Ca, Mg, with a total mineralization of 1,41 g/l, temperature around 30º S and hardness (pH) 6,6. Banja Badanja is located on the southern slope of Iverak, in the area of village Donja Badanja in the valey of the river Cernica. There are two springs in Banja Badanja: the “Main spring“ with sulphurous water and the “Iron water“. The water temperature is about 15-18º S, with a total mineralization of 0,8 g/l, hardness 7,0, with significantly increased radioactivity.