OTP Bank Romania begins the lending activity for the national program Noua Casă, following the signing of the collaboration protocol with the National Credit Guarantee Fund for SMEs.
OTP Bank will grant loans for the purchase of housing offering a variable interest rate of 2% + IRCC (Consumer Credit Reference Index), without analysis or administration fees. However, the Noua Casă program involves a management fee for the guarantee granted by the state, amounting to 0.40% at present and which is paid by the customer in proportion to the percentage of the guarantee he benefits of.
"As a universal bank, we have the responsibility to provide our customers with a complete range of banking products and services, and the Noua Casă program is an essential one. In a still sensitive economic context, in partnership with FNGCIMM, we will support through this program the purchase of new homes and we are glad that we can continue to offer optimal lending conditions", said Roxana Hidan, Deputy CEO and Head of Retail Banking Division, OTP Bank Romania.
According to the latest changes to this program, the minimum down payment for Noua Casă is set based on the value of the property and the category in which the home falls. Thus, the down payment is at least 5% of the purchase price for all categories of housing if the value of the property is a maximum of 70,000 EUR (equivalent in lei). In this case, the maximum amount of credit granted by the bank is EUR 66,500 (equivalent in lei), and the state guarantee is 50%.
At the same time, for new or consolidated real estate, if the value of the property is between 70,001 EUR and maximum 140,000 EUR (equivalent in lei), the down payment will be at least 15% of the purchase price. In this case, the loan amount is between a minimum of EUR 59,501 and a maximum of EUR 119,000 (equivalent in lei), and the state guarantee is 60%.
The calculation examples show us that for a loan worth 300,000 lei, for a period of 30 years, the customer will have:
- Variable interest: 4.41% (interest margin of 2% + IRCC 2.41%),
- FNGCIMM management fee: 0.40%, calculated from the value of the guarantee,
- Effective annual interest rate (EAR): 4.50%,
- Monthly rate: 1,504 lei (method of repayment in equal instalments + interest),
- The total cost of the loan: 241,460 lei,
- The total value paid: 541,460 lei.
At the same time, for a Noua Casă loan worth 500,000 lei, for a period of 30 years, the calculation example indicates:
- Variable interest: 4.41% (interest margin of 2% + IRCC 2.41%),
- FNGCIMM management fee: 0.40%, calculated from the value of the guarantee,
- Effective annual interest rate (EAR): 4.50%,
- Monthly rate: 2,507 lei (repayment method in equal instalments + interest),
- The total cost of the loan: 402,433 lei,
- The total value paid: 902,433 lei.
About OTP Bank Romania
OTP Bank Romania, a subsidiary of OTP Group, is an integrated and self-financed provider of financial services. With an approach defined by responsibility, commitment and professionalism, OTP Bank Romania understands the needs of clients and the current context of the market and is a trusted partner in the provision of financial services. The bank ranks 9th in terms of assets in the ranking of banking players in Romania, as of December 2018.
OTP Group has more than 70 years of activity in the financial sector in Central and Eastern Europe, while the Romanian subsidiary has marked 16 years of presence in the local market. Promoting innovation, stable growth and integrated financial services, OTP Group has become a dominant player in the Central and Eastern European market and is considered an important banking group even on a European scale. The community of about 36 thousand employees serves nearly 19 million customers daily in 12 countries.
