General information guide on loans with collateral guarantee

With this guide, we provide you with all the information you need for loans with collateral

GARANTI BANK SA, with registered office in Bucharest, Sos. Fabrica de Glucoza nr. 5, Novo Park 3, Business Center, Building F, 5th and 6th floor, sector 2, with Trade Register number J40/4429/2009, tax ID: RO 25394008, registered in the register of credit institutions under no. RB-PJR-40-066/2009, registered in the A.S.F. Register under no. PJR01INCR/400019/28.03.2019 offers to the individual customers, two types of loans with collateral guarantee: Loan for the purchase of property (Housing loan) and Personal needs loan with collateral.

Personal needs loan with collateral

Purpose / Destination of the loan

Loan guarantee

Lending period

Note! The duration of the loan will not exceed the duration of the individual employment contract in the case of fixed-term employees.

Interest Rate

Interest is paid monthly, along with the principal, through the calculated loan rate. Payments shall be made from the Borrower’s cash account with the Bank.

Repayment method

Early repayment

Conditions for obtaining the loan

In order to benefit from the loan conditions described in this document, you must meet the following obligations by the time the loan is drawn down;

Taking out and maintaining until the end of the credit agreement a compulsory PAD insurance policy, assigning/mortgaging receivables relating to insurance contracts in favour of the bank and notifying the insurance companies of the assignment or showing their acceptance of the assignment. The cost of this compulsory PAD insurance policy is EUR 20 per year and has been included in the calculation of the APR;

Taking out and maintaining until the end of the credit agreement a voluntary insurance policy, assigning/mortgaging the receivables related to the insurance contracts in favour of the bank and notifying the insurance companies of the assignment or showing their acceptance of the assignment; The voluntary insurance policy shall be taken out in the currency of the loan for an amount equal to the appraised value of the property pledged as collateral, and shall cover at least the following risks: fire, lightning, explosion, falling aircraft and space vehicles, impact by road vehicles, atmospheric phenomena (storm, hurricane, gale, tornado, including hail), weight of snow cover, sonic waves, fumes, gas vapours, earthquake, floods and mudslides, torrential rain, collapse, drift or landslides, fire brigade costs, demolition, evacuation and transport costs, redesign costs;

If the optional insurance policy is taken out with the insurer Alliantz, the cost of the annual insurance premium is 0,079% applied to the appraised value of the property and has been included in the calculation of the APR; If the optional insurance policy is with another insurer, the cost of the insurance premium is not known to the bank and has not been included in the calculation of the APR;

Inclusion in the bank group life insurance, or if you are not eligible, the conclusion and maintenance until the end of the loan agreement of a life insurance contract with an insurance company operating in accordance with the relevant legal regulations and the assignment/mortgage in favour of the bank of the receivables related to the insurance policy and notification of the assignment to insurance companies;

The life insurance policy will be concluded in the currency of the loan and must cover: the risk of death from any cause and permanent total and partial disability from any cause. If you are included in the Bank group life policy, there is no cost to you. If you are not included in the Bank group policy, the cost of insurance is not known to the Bank and has not been included in the calculation of the APR;

The insurance policies mentioned above shall be delivered to the Bank in original, through any territorial agency, together with proof of payment of the insurance premium(s) for the relevant policies at least 3 days before their expiry.

Please note the possible consequences of terminating at a later stage any of the ancillary services relating to the loan;

If, during the course of the credit relationship, you fail to comply with your obligation to extend/renew your property insurance policies and you do not provide the Bank with proof of payment of the insurance premium(s) for the relevant policies at least 3 days before their expiry, the Bank shall be entitled to choose the insurer and to take out, on your behalf and for your account, insurance policies for the property with which the credit is secured for a period of up to one year, the costs being borne by you. The Bank will conclude the insurance policy(ies) only after prior notification of: the obligation to extend/renew the insurance policy(ies), the right of the Bank to conclude the insurance policy(ies) on your behalf and at your cost, the conditions of the insurance policy to be concluded.

If, during the course of the credit relationship, you do not comply with the obligation to extend/renew your life insurance policies (if you have not been included in the group policy of the Bank) and you do not provide the Bank with proof of payment of the related insurance premiums at least 3 days before their expiry, the Bank is entitled to declare the credit past due.

Valuation of the property provided as collateral by an authorized appraiser, in accordance with the regulations of the Government Emergency Ordinance no. 52/2016 on loans offered to consumers for real estate as well as the amendment of the Government Emergency Ordinance no. 50/2010 on credit agreements for consumers

When valuing a real estate property, mandatory valuation standards adopted by the National Association of Authorized Appraisers in Romania are used.

1) The consumer has the right to choose whether the appraisal is carried out by an appraiser employed/paid by the creditor or by another appraiser.

2) If the consumer decides to have the appraisal carried out by an appraiser who is not employed/paid by the creditor, the consumer has the right to choose between an appraiser from a list proposed by the creditor of at least 15 appraisers and any other authorised appraiser who is a member of the National Association of Authorised Appraisers in Romania.

3) In the situation referred to in para. (2), the assessment shall be carried out on the basis of an assessment service agreement concluded with the consumer.

4) If creditors request a standard appraisal report, they shall communicate the standard format to the consumer’s chosen valuer without undue delay.

Following the verification of the guarantee and the information in the appraisal report, the Bank may request the consumer to submit an MLPAT expert report containing clarifications on the status of the resistance structure. It is compulsory to submit such an expert’s report for buildings built before 1960. The cost of such an expertise is borne entirely by consumers.

Opening a current account in the currency of the loan and maintaining it for the duration of the loan. The amount of the loan is credited to this account and the monthly repayments are made. There is no charge for opening and administering this account.

The establishment and maintenance of guarantees in favour of the creditor throughout the duration of the loan.

Please note that the lending conditions described in this document (including the interest rate) may change if these obligations are not complied with.

Consequences in case of non-payment

Non-payment of the loan installment, of the monthly interest due, of any cost, as well as late payment lead to:

Increasing the amounts owed to the creditor by accruing penalty interest. Penalty interest is calculated on the basis of a fixed percentage of 3 percentage points added to the current interest rate and applied to the outstanding principal. In all cases, the amount of penalty interest shall not exceed the outstanding principal. If you or your spouse are in one of the following situations: unemployment, a drastic reduction in salary (a reduction of at least 15% of the salary) or death, the penalty interest will not exceed the current interest rate by more than two percentage points. In this way, you will submit a written request to the creditor accompanied by documents proving your situation. This interest will be charged until the event giving rise to the reduction in income ceases, but for no more than 12 months. In case of death, the period cannot be less than 6 months. You must notify the creditor immediately, but no later than 15 calendar days, of the cessation of the event that caused the reduction in income.

Declaration of early maturity and commencement of enforcement proceedings. The bank may declare the credit overdue early after 90 consecutive days of arrears. After a period of 3 months from the declaration of early maturity, the Bank may start the enforcement proceedings. At your express request, the Bank may reduce this period. Before early maturity is declared or before the foreclosure procedure starts, you can ask the Bank to sell the mortgaged property directly by you. The bank grants this right for a period of at least 6 months, and may trigger foreclosure at the end of this period.

Reporting overdue debts to Biroul de Credite S.A. – starting from the 31st day of late payment.

Reporting of outstanding amounts to the Central Credit Register and other similar structures – The Bank will report monthly the existence of outstanding amounts recorded at the end of the calendar month in the immediately following month. These reports will be made in accordance with the legal regulations in force.

Warning about the risks of loan contracting

Calculation examples

Total amount payable is: 461,833.19 Lei 

Total amount payable is: 456,080.64 Lei

Assumptions considered in the calculation of the APR

This APR is calculated using the following assumptions:

Costs not included in the EAD

The following costs are not known to the lender and are therefore not included in the EAD:

Additional costs

The Consumer shall bear at his own expense, unless otherwise agreed, the cost of insurance contracts relating to the goods provided as collateral, the costs of authentication/registration in the Land Register of the mortgage contract, i.e. notary fees, including related taxes and duties, as well as the cost of formalities for the cancellation of collateral provided under this Contract, as determined by the competent authorities and entities, including the notary public fee for the authentication of the Bank agreement to release the collateral.

Property purchase loan (housing)

Purpose/Destination of the loan

Loan guarantee

Lending period

Interest Rate

Interest is paid monthly, along with the principal, through the calculated loan rate. Payments shall be made from the Borrower’s cash account with the Bank.

Repayment method

Early repayment

Conditions for obtaining the loan

In order to benefit from the loan conditions described in this document, you must meet the following obligations by the time the loan is drawn down;

Taking out and maintaining until the end of the credit agreement a compulsory PAD insurance policy, assigning/mortgaging receivables relating to insurance contracts in favour of the bank and notifying the insurance companies of the assignment or showing their acceptance of the assignment. The cost of this compulsory PAD insurance policy is EUR 20 per year and has been included in the calculation of the APR;

Taking out and maintaining until the end of the credit agreement a voluntary insurance policy, assigning/mortgaging the receivables related to the insurance contracts in favour of the bank and notifying the insurance companies of the assignment or showing their acceptance of the assignment; The voluntary insurance policy shall be taken out in the currency of the loan for an amount equal to the appraised value of the property pledged as collateral, and shall cover at least the following risks: fire, lightning, explosion, falling aircraft and space vehicles, impact by road vehicles, atmospheric phenomena (storm, hurricane, gale, tornado, including hail), weight of snow cover, sonic waves, fumes, gas vapours, earthquake, floods and mudslides, torrential rain, collapse, drift or landslides, fire brigade costs, demolition, evacuation and transport costs, redesign costs;

If the optional insurance policy is taken out with the insurer Alliantz, the cost of the annual insurance premium is 0,079% applied to the appraised value of the property and has been included in the calculation of the APR; If the optional insurance policy is with another insurer, the cost of the insurance premium is not known to the bank and has not been included in the calculation of the APR;

Inclusion in the bank group life insurance, or if you are not eligible, the conclusion and maintenance until the end of the loan agreement of a life insurance contract with an insurance company operating in accordance with the relevant legal regulations and the assignment/mortgage in favour of the bank of the receivables related to the insurance policy and notification of the assignment to insurance companies;

The life insurance policy will be concluded in the currency of the loan and must cover: the risk of death from any cause and permanent total and partial disability from any cause. If you are included in the Bank group life policy, there is no cost to you. If you are not included in the Bank group policy, the cost of insurance is not known to the Bank and has not been included in the calculation of the APR;

The insurance policies mentioned above shall be delivered to the Bank in original, through any territorial agency, together with proof of payment of the insurance premium(s) for the relevant policies at least 3 days before their expiry.

Please note the possible consequences of terminating at a later stage any of the ancillary services relating to the loan;

If, during the course of the credit relationship, you fail to comply with your obligation to extend/renew your property insurance policies and you do not provide the Bank with proof of payment of the insurance premium(s) for the relevant policies at least 3 days before their expiry, the Bank shall be entitled to choose the insurer and to take out, on your behalf and for your account, insurance policies for the property with which the credit is secured for a period of up to one year, the costs being borne by you. The Bank will conclude the insurance policy(ies) only after prior notification of: the obligation to extend/renew the insurance policy(ies), the right of the Bank to conclude the insurance policy(ies) on your behalf and at your cost, the conditions of the insurance policy to be concluded.

If, during the course of the credit relationship, you do not comply with the obligation to extend/renew your life insurance policies (if you have not been included in the group policy of the Bank) and you do not provide the Bank with proof of payment of the related insurance premiums at least 3 days before their expiry, the Bank is entitled to declare the credit past due.

Valuation of the property provided as collateral by an authorized appraiser, in accordance with the regulations of the Government Emergency Ordinance no. 52/2016 on loans offered to consumers for real estate as well as the amendment of the Government Emergency Ordinance no. 50/2010 on credit agreements for consumers

When valuing a real estate property, mandatory valuation standards adopted by the National Association of Authorized Appraisers in Romania are used.

1) The consumer has the right to choose whether the appraisal is carried out by an appraiser employed/paid by the creditor or by another appraiser.

2) If the consumer decides to have the appraisal carried out by an appraiser who is not employed/paid by the creditor, the consumer has the right to choose between an appraiser from a list proposed by the creditor of at least 15 appraisers and any other authorised appraiser who is a member of the National Association of Authorised Appraisers in Romania.

3) In the situation referred to in para. (2), the assessment shall be carried out on the basis of an assessment service agreement concluded with the consumer.

4) If creditors request a standard appraisal report, they shall communicate the standard format to the consumer’s chosen valuer without undue delay.

Following the verification of the guarantee and the information in the appraisal report, the Bank may request the consumer to submit an MLPAT expert report containing clarifications on the status of the resistance structure. It is compulsory to submit such an expert’s report for buildings built before 1960. The cost of such an expertise is borne entirely by consumers.

Opening a current account in the currency of the loan and maintaining it for the duration of the loan. The amount of the loan is credited to this account and the monthly repayments are made. There is no charge for opening and administering this account.

The establishment and maintenance of guarantees in favour of the creditor throughout the duration of the loan.

Please note that the lending conditions described in this document (including the interest rate) may change if these obligations are not complied with.

Consequences in case of non-payment

Non-payment of the loan installment, of the monthly interest due, of any cost, as well as late payment lead to:
Increasing the amounts owed to the creditor by accruing penalty interest. Penalty interest is calculated on the basis of a fixed percentage of 3 percentage points added to the current interest rate and applied to the outstanding principal. In all cases, the amount of penalty interest shall not exceed the outstanding principal. If you or your spouse are in one of the following situations: unemployment, a drastic reduction in salary (a reduction of at least 15% of the salary) or death, the penalty interest will not exceed the current interest rate by more than two percentage points. In this way, you will submit a written request to the creditor accompanied by documents proving your situation. This interest will be charged until the event giving rise to the reduction in income ceases, but for no more than 12 months. In case of death, the period cannot be less than 6 months. You must notify the creditor immediately, but no later than 15 calendar days, of the cessation of the event that caused the reduction in income.

Declaration of early maturity and commencement of enforcement proceedings. The bank may declare the credit overdue early after 90 consecutive days of arrears. After a period of 3 months from the declaration of early maturity, the Bank may start the enforcement proceedings. At your express request, the Bank may reduce this period. Before early maturity is declared or before the foreclosure procedure starts, you can ask the Bank to sell the mortgaged property directly by you. The bank grants this right for a period of at least 6 months, and may trigger foreclosure at the end of this period.

Reporting overdue debts to Biroul de Credite S.A. – starting from the 31st day of late payment.

Reporting of outstanding amounts to the Central Credit Register and other similar structures – The Bank will report monthly the existence of outstanding amounts recorded at the end of the calendar month in the immediately following month. These reports will be made in accordance with the legal regulations in force.

Warning about the risks of loan contracting

Calculation examples

Total amount payable is: 817,928.92 Lei

Total amount payable is: 722,154.58 Lei

Assumptions considered in the calculation of the APR

This APR is calculated using the following assumptions:

Costs not included in the APR

The following costs are not known to the lender and are therefore not included in the EAD:

Additional costs

The Consumer shall bear at his own expense, unless otherwise agreed, the cost of insurance contracts relating to the goods provided as collateral, the costs of authentication/registration in the Land Register of the mortgage contract, i.e. notary fees, including related taxes and duties, as well as the cost of formalities for the cancellation of collateral provided under this Contract, as determined by the competent authorities and entities, including the notary public fee for the authentication of the Bank agreement to release the collateral.

Real estate purchase loan (real estate)

Type of Guarantee Customer type Income LTV Minimum advance
Flat /house + land
(Real estate classified as
seismic risk class III and IV
(built after 1960)
Romanian citizen from Romania – first immovable acquisition 85% 15%
from Romania 75% 25%
from Abroad 60% 40%
Citizen foreigner resident from Romania (RON/other currency) 50% 50%
2. Intravillary land taken out of the circuit Romanian citizen From Romania 50% 50%
Romanian citizen from Abroad Not accepted
Citizen foreigner resident From Romania
3. Commercial space Romanian citizen From Romania / other currency 60% 40%
4. Cash Guarantee in Credit Currency Romanian citizen /foreigner resident 100% 5%
5. Cash guarantee in currency other than credit Romanian citizen /foreigner resident 95% 10%
6. Guarantees offered by the state Romanian citizen /foreigner resident 95% 5%
7. Seismic III buildings built before 1960 Romanian citizen /foreigner resident 50% 25%

*Aplicabil doar in cazul creditelor imobiliare