The guarantee budget for the program amounted to RON50 million last year, as the government approved the program mid-October, so that only 10 banks and non-banking financial institutions managed to register in the program.
Program beneficiaries may get loans for maximum five years for cars that cost up to RON50,000 plus VAT. The state will subsidize half the interest on the loan. Prospective buyers will have to make a down-payment of 5% to 10% of the loan.
The program mainly targets people aged 18 to 35, but other age groups are not excluded. State guarantees on car loans will cover maximum 50% of the loan and the purchased car will represent the rest of the collateral.
The program limits car purchases to new cars that meet at least the minimum requirements of the Euro 5 standard. (EUR1=4.4143)