CAR loans to pay back banksPublish date: 20-11-2009
In the past year, mutual assistance houses (CAR) have become the main way in which persons with low income have managed to obtain a loan to cover their daily expenses.
According to data provided by the National Bank of Romania (BNR), there are 2,998 mutual assistance houses in Romania at present, divided into two categories, for employees and retirees. The amount the clients of such houses can borrow is limited to three times the amount they contributed.
"Over 75 percent of the people borrowing from CAR use the money to pay their bank instalments. Also, people prefer such loans, because they know exactly when and how much they have to pay. The conditions of a CAR loan are not like those of a bank, and if the debtor cannot pay his or her instalment, we wait until he recovers financially," said the representative of a mutual help house.
Banks also have mutual assistance houses for their employees.
For example, 38 loans were granted by a county CAR of CEC Bank in the first nine months of this year, at an annual interest rate of 12 percent.
According to the representatives of this institution, the largest loan granted was of RON 5,000 (€1,168).
Most of the clients of mutual assistance houses are retirees. In the town of Videle, the CAR for retirees granted 2,250 loans worth a total RON 4.1 million (€970,000) in the first three quarters. "The largest loan was of RON 10,000 [€2,365]. The interest rate varies depending on the number of instalments, from 1 to 20 percent. During the holiday season, contributors can take out a loan of up to RON 300 [€70] interest-free," said a representative of the Videle CAR.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei