Consumer loan rates now stand at 15% per annum, only 1% below last year’s level. Leu mortgage loans are still twice as expensive as the euro loans.
The actual cost of a leu home loan is higher than 8% a year, while a similar loan in euros comes with a less than 5% rate per annum. This means a customer choosing a leu loan ends up repaying 40% to 50% more than if they had taken out a euro loan.
Bankers, however, are trying to steer customers towards leu lending because of the dwindling amount of foreign currency available. The lower interest rates are an important factor for customers, though, who most often go for foreign currency loans.
For instance, a thirty-year 180,000 leu (almost EUR41,000) loan comes with a monthly installment of RON1,330 (EUR300) at the current interest rates, while a similar euro loan comes with a monthly installment of EUR210.
The customer will repay 40% more for the leu loan by the end of the thirty-year period than if they had chosen a foreign currency loan.
(English version by Loredana Fratila-Cristescu)