Retail loans cheaper in October after three months of higher interests

Bankers in October made RON and euro loans to the consumers more than half a percentage point cheaper, with interest rates going down to 12.2% and 5.9% per annum, respectively, after they had during previous months pushed up loan costs in a bid to cover charges related to the implementation of Ordinance 50, which set more transparent conditions for loans.

After these adjustments, interest rates are close to the year’s lows, reached in early summer.

“We noticed a downward loan cost trend in November, as well. In general, large and medium-sized banks are more aggressive when it comes to these interest cuts, while many small players prefer keeping costs stable,” stated Anca Bidian, general manager of Kiwi Finance credit broker.

The falling loan interests come as inflation growth has lost momentum, which allowed banks to pay less for funds raised from customers. The average interest for RON deposits reached 7.39% in late October, from 7.51% in September, according to NBR data.