How do you get a Loan?

Many customers wonder if they need to apply for a loan and it turns out that a loan is not always necessary, so we will go together through the steps to identify the right type of loan to apply for and take out a loan, including some suggestions for a better approach. simple, fast and carefree.

Here are the steps

Step 0: Is this Loan really necessary?

Before applying for any kind of consumer, mortgage or other loan, the first recommended step is a serious analysis of the need to receive this loan and your possibility of repayment. For these reasons, it is advisable to calculate the financial possibilities to pay the monthly installments. Therefore, before applying for a loan, answer the following question:

Is this purchase (house, car, clothing, etc.) absolutely necessary now?

Note: It is important to analyze in the future perspective, in the next 2-3 years you will also be able to pay the loan, but in 5 or 10 years?

Step 1: Which financing product suits you?

1. Loans for the purchase / construction of a home

a) Loans ”Prima Casă”:

A project from the government that you can find here with more details and participation criteria. A good solution for young families with a stable and secure income at an advantageous rate. Beneficiary of the state program "First House" can be any citizen of the Republic of Moldova aged between 18 and 45 years at the time of applying for a mortgage. The loan applicant must be officially employed, at state institutions or private companies from the Republic of Moldova, and, respectively, to have income from official sources.

b) Mortgages:

  • Intended for the purchase / construction of a home (for those who do not meet the conditions of the First Home Program or do not want to purchase / build a home through the Program)
  • It is granted for a maximum of 30-35 years, usually 20 years.
  • An advance of 10% -30% is required depending on the lending company
  • The purchased property guarantees the contracted credit

c) Real Estate Loans:

Similar to the mortgage loan, but it is not necessary for the property purchased through the loan to guarantee the loan, other real estate mortgages are used, which are not financed.

2. Consumer loans

a)For needs without justification of the credit destination

They represent loans that are offered quickly and the amounts are small, reaching around 10,000 lei. It may be more or less dependent on the bank or the Non-Bank Lending Organization (OCN). In the case of Start Credit, this type of credit is called Simple Credit.

b)For Responsible Needs

Represents the credits that are granted for specific destinations, which are based on confirmatory documents (payment account, invoice, etc.). In the case of larger amounts, a guarantor (guarantor) and / or some pledge may be required

Example for responsible destinations:

  • study credits;
  • credits for medical purposes;
  • car loans;
  • credits for the purchase of heating systems;
  • loans for other responsible needs.

Step 2: What is the amount I can borrow?

It is important to be honest and real with yourself when it comes to how real you can pay monthly on credit. Respectively, it is good to calculate your monthly income which is stable as well as the monthly expenses you have to see what amount you have left to understand the ability to pay on time. Once you make these calculations, you can calculate from your expenses what savings you can make to increase your monthly payments so that you can actually repay the loan faster and pay less on interest, respectively. This way you will be able to conveniently choose the amount you want in the shortest possible time with a monthly payment that you will face.

Step 3: Which product and from which company should I get?

Mandatory to be informed from several companies and from several sources about their products. Initially, the most advantageous percentages are offered by banks, but also at banks and the eligibility conditions are much stricter, respectively if you have not been accepted by the bank you can go to Non-Bank Lending Organizations that have less requirements. The most important indicator to understand the costs and how advantageous the proposal is to consider the APR (Annual Percentage Rate). The APR is the total cost of the loan calculated as an annual percentage that includes both interest and related fees ( respectively, the analysis commission and the credit administration commission). In order to correctly correlate the APR in the comparison of loans, it is very important that this indicator is calculated for the same borrowed amount and the same repayment term and the same repayment method at the level of all compared offers. To make sure you get a relevant comparison, use a APR computer provided by independent comparison websites or even on the banks' websites, where you enter for each product all identified costs and determine the corresponding APR value. the amount and period of funding desired. For a loan of 1,500,000 lei over a period of 30 years, a difference of APR of only 0.1% (from 6% to 6.1%) can increase the amount you have to repay over the entire period of lending with over 30,000 lei. Start Credit offers one of the lowest APRs on the market and displays them directly on your credit computer.

Step 4: What documents must be submitted?

The required documents mostly vary from 2 compartments. The first is from which institution you want to obtain bank credit or Non-Bank Lending Organizations, in this case the documentation at banks would be more voluminous. The second is what is the amount you want, if the amount exceeds 10-15 thousand lei there will be additional documents as a guarantor, pledge, proof of income.

Example documents required for the bank:

  • the original identity document, a copy of which is deposited with the Bank
  • credit application
  • a proof of salary income
  • the agreement for consulting and processing the information from the specific databases of Bureau of Credits
  • other documents that certify your income level
  • In case of loans over 100,000 lei real estate guarantees and guarantor person.

Example documents required for Start Credit:

  • The original bulletin
  • Credit application and personal data processing agreement
  • In case of loans with large amounts a pledge or/and guarantor

Step 5: When do I find out the answer and what's next?

Based on the requested and submitted documents, the Bank determines, within 30 days, your eligibility for a loan and can provide you with a credit offer.

Once you have decided to accept a Bank's offer, it will be formalized through a credit agreement, together with ancillary contracts for mortgages (if applicable). The credit agreement will govern the contractual relationship until full repayment of the loan, so read it carefully and sign it only once you are sure that you understand the clauses included in it, especially those concerning costs and obligations.

At Start Credit, depending on the type of loan, you receive the answer in one hour for simple credit and in one day for loans with larger amounts.

You will also receive the loan repayment schedule. Keep it and make sure you pay each installment on time if you can pay even more to repay the loan earlier. In the case of variable interest loans, the interest rate may vary according to the reference index specified in the credit agreement, so it follows its evolution. However, the bank or Non-Bank Lending Organizations will inform you if the interest rate changes.