Early repayment fee cap gives major boost to refinancing market

The capping of the early repayment fee is opening up the
market of refinancing loans for bankers, with a few players already
having products specially created to attract clients from other
banks.
Big players, such as Raiffeisen Bank and CEC Bank already have
special credits in their offer to refinance other loans, while most
banks say products in their standard offer can also be used for
settling older debts.
“We have secured loans in our offer, soon we will also add
non-secured loans,” says Mitica Tararache, manager of Credits for
individuals at Raiffeisen Bank.
The terms for granting refinancing loans are similar to those
for standard loans, adds the Raiffeisen official.
If the bank does not have a special refinancing product in its
offer, clients must specify that they want to settle an older debt,
so the instalments are not considered when setting the indebtedness
level.