Romanians May Choose To Repay Loans In Equal Or Decreasing Installments

„Repaying medium- and long-term loans can be done in one of two ways: through in equal installments (annuities) and in decreasing installments. The consumer has the right to choose the manner in which this will be done,” says a new section added to article 38 of Government Emergency Ordinance no. 50/2010 and voted by the Committee for budget, finance and banks.

The amendment’s sponsors argued that repaying in installments of decreasing value presents a number of advantages, such as the total interest rate, much lower than if repaying in equal installments. For instance, the difference in the case of a EUR300,000 loan, maturing in 30 years, with an interest of 5.95% per year, is EUR79,231.

One disadvantage of decreasing installments, noted by the amendment’s motivation, is that they are higher in the first years, limiting the amount the consumer may borrow.

Bolojan: Întărirea flancului estic NATO, de la Marea Baltică la Marea Neagră, o prioritate

23:08

Ilie Bolojan anunță că România nu va dubla cheltuielile de apărare

23:06