Lesson 3 of 4 · 5 min read
Early repayment and your legal right (OUG 50/2010)
You have a legal right to repay a consumer loan early in Romania. See what that means in practice and when it is really worth it.
In Romania, OUG 50/2010 regulates consumer credit and guarantees consumers the right to repay a loan early, in part or in full, without the bank being able to refuse or impose disproportionate costs. Any early repayment costs are capped by law, not left to the lender's discretion.
When early repayment is worth it
Early repayment on the loan with the highest DAE directly reduces the total interest left to pay. It makes the most sense when: (a) you don't yet have a minimum emergency fund in place, in which case put that buffer first (see Step 2), and (b) the DAE of that loan clearly exceeds the return you could get elsewhere, at comparable risk.
Use the Early repayment simulator in the Calculators section to compare exactly: how many RON you save in interest if you pay an extra sum now, against continuing with normal instalments.
What to check first
- Ask the bank for an updated repayment schedule, with the exact sum left to pay.
- Check whether there are early repayment costs (capped by law, but they can exist on some products).
- Confirm whether partial repayment lowers the monthly payment or the length of the loan: usually you can choose.
In short
- OUG 50/2010 guarantees the right to early repayment of a consumer loan.
- Put the minimum emergency fund first, before repaying early.
- Check the exact sum left and any costs before you decide.