BCR Applies New Lending Norms, Expects to Double Loan Volume

Banca Comerciala Romana (BCR) will apply, starting on Monday, June 25th, new lending norms for private individuals, with interests from 5.8%/year. The loan applicants will benefit from an indebtedness degree of up to 65% calculated at net eligible income of the family. The indebtedness degree accepted for each applicant depends on the risk profile of customers and his/ her payment behaviour.

In the second semester, BCR will introduce the possibility of contracting loans with different advances (between zero and 25%), depending on the loan type.

The eligible income of the family is the net income from which the costs of minimum living standard and other obligations are deducted. The minimum living standards will be differentiated by geographic regions and by the city of residence. The difference between income and expenses side can be used for additional financing. The exact amount which can be borrowed will be determined for each applicant. For calculating the reimbursement, BCR will accept taking into account the revenues of up to 4 internal co-payers. For the loans secured with real guarantees, BCR will accept 4 external co-payers.

Within the new norms BCR renounces to the coverage with guarantees of the real estate loan in a 133% proportion and establishes the following: for consumer loans the coverage degree with guarantees can vary between zero and 100% and for real estate loans the minimum accepted level is 80%.

Furthermore, BCR increases to EUR 15,000 or RON equivalent the maximum amount that can be granted for a general purpose loan without mortgage.

Following the implementation of the new lending norms, the bank expects to double its retail loan volume. BCR also estimates that the number of its customers will increase by 50% to 1.8 million in the following period.

BCR, member of Erste Bank Group, is the largest banking institution in Romania, managing assets exceeding EUR 14.6 billion. The bank has 505 branches and agencies throughout the country and operates on the banking, capital, leasing, insurance and asset management markets.