Rational Borrowing Behaviour (for Individuals)
Automatically translated summary. The full text is available in Romanian.
This information note, produced under the National Financial Education Campaign run by the National Bank of Moldova and Expert-Grup with USAID support, explains when individuals in Moldova should borrow, how to compare and sign loan offers, how to repay, and what rights the law gives consumer borrowers.
Borrowing is rational when repayment capacity is good and the purpose, such as housing, a business project, education or cheaper refinancing, will raise future income. Impulse purchases, risky investments and paying old debts with larger new ones are irrational. Borrowers should start with banks before non-bank lenders and compare the annual effective interest rate (AER) for loans of the same amount and term, choosing the smallest sum and shortest period. Early repayment terms and the split between principal and interest matter, and unlicensed moneylenders must be avoided.
Contracts should be read in full and can be revoked within 14 days. Payments should be made early, and restructuring or refinancing is an option if repayment is hard. Credit history shapes future terms. By law, annual interest cannot exceed 50%, other charges are capped at 0.04% of the loan per day, and total cost cannot exceed the amount disbursed, except for property loans. The National Financial Market Commission protects consumer rights.
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