Consumer and mortgage loans have long been part of our lives. Basically, they take loans to buy something: from a vacuum cleaner and a mobile phone to an apartment. At the same time, you can often hear stories about how a borrower, having taken a loan, “got into a lot of money.”
I want to take a loan. What is needed for this?
First you need to understand exactly what you need a loan for and how much you need for this. Banks issue two types of loans to individuals: consumer and mortgage.
Mortgage loans are issued for the purchase of real estate or for its renovation. The amount of a mortgage loan can be up to several million lei, and the repayment period can be up to 25 years. But this type of loan assumes that the first installment for an apartment (at least 10% of its value) is paid by the buyer himself. It is possible not to make a down payment if the client can provide additional security.
The loan is settled. How can you not overpay for it?
You need to start by studying all the offers on the market. Today, all banks have loan calculators on their website: you can enter the amount, the term for which you want to take a loan, and get complete information about how much you will pay monthly and how much the loan will cost you in total.
If a bank advertises too low an annual interest rate on a loan, then this is a reason to be wary. Most likely, the bank will have hidden fees, and the final cost of the loan will be no lower, and maybe even higher than at higher interest rates.
There is such a thing as the effective interest rate (EPR). This is the annual interest rate, taking into account absolutely all bank commissions
You can find more information in this area here. I think that this information will be useful for you and it will help you make the right decision.