Loans for weddings or studies, where the state covers up to the entire interest. What do young Romanians need to do
Young people in need of a bank loan can now access a low-cost credit program starting this month. Two government initiatives have been launched, whereby the state covers either fully or partially the interest for those up to 40 or 45 years old.
ȘTEFANA TODICĂ
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Known as Family Start and Student Invest, these programs are available until the end 2023. However, funds are limited.
As the name suggests, the Family Start program is dedicated to those who have a family or plan to start one.
Applicants must be between 18 and 45 years old and can borrow up to 150,000 lei, approximately 30,000 euros, for a maximum of 10 years. The only condition is that the net income per family member should be below 6,000 lei or 7,500 lei for single-parent families.
In this program, applicants must demonstrate with documents what they will do with the money, as there is a list of eligible expenses. For example, eligible expenses include wedding organization, daycare, kindergarten or school for children, a car, home renovation or even a down payment for a new home. Additionally, these funds can be used to pay in advance an older mortgage.
In other words, if you already have a housing loan, which can be either Prima Casă or Noua Casă, and you have a higher installment now due to increased interest rates, you can take out a loan of up to 30,000 euros through the Family Start program and pay the loan in advance. This way, you can reduce the monthly installment and even the duration of the loan.
Student Invest Loan, up to 75,000 lei, with zero interest
The new loan is for 10 years, but the interest is very low, only 2.5%, because the state covers 75% of the total interest. It is much cheaper than any other loan on the market. For the maximum amount of 30,000 euros, over 10 years, the monthly installment would be only 1,400 lei.
The second program is dedicated to those up to 40 years old, but the condition is to be enrolled in a university. They can borrow up to 75,000 lei, for 10 years as well. In this case, the state covers the entire interest, which for the beneficiary will be 0. Eligible expenses include tuition fees, rent, various medical treatments and also the down payment for a new home.
Both programs can be accessed until the end of 2023, but there is a cap of 250 million lei for each.
Corneliu Toma, representative of a bank: "There are about 1,700 maximum beneficiaries for Family Start, and 3,300 for Student Invest. The programs start at the end of 2023 and time is limited".
Five banks are involved in the Family Start and Student Invest programs.
