May 7, București. Consumers should assess their financial vulnerability in case of a potential financial and real estate crisis, recommend credit specialists. Although the lending market over the past 10 years has become much more stable, it’s still important to carefully follow all necessary steps when applying for a loan. What are the costs of a loan, how does your credit history impact approval, and why does the “Noua Casă” program need reforming? These are among the topics discussed in the podcast produced by the Alternative Banking Dispute Resolution Center (CSALB).

The guests featured in the episode on credit are two of the most important loan brokers in Romania: Anca Bidian, CEO of Kiwi Finance and Dragoș Nichifor, CEO of Bayer Credit, in a discussion moderated by Emilia Olescu, editor-in-chief of the Bursa Newspaper.

| PODCAST CSALB | https://www.youtube.com/watch?v=5MzcTbwFufY

The fifth season of the CSALB Podcast explores topics inspired by the types of negotiation requests consumers submit to the Alternative Banking Dispute Resolution Center: cards and payments, bank loans, fraud, foreclosures, courts vs alternative resolution, saving, and investment. This year, CSALB hosts discussions with banking experts, loan brokers, judicial executors, anti-fraud specialists, and more. The debates are moderated by financial analysts, financial literacy trainers, and well-known journalists from the economic press. Through this year’s discussions, we aim to equip consumers with the tools needed to manage and protect their personal finances in an unpredictable macroeconomic context.

Let’s examine both the profile of a consumer who applies for and receives a bank loan and the outlook for the lending sector as concerns rise about a potential financial or real estate crisis. Today’s situation is significantly different from the 2009 crisis or the one caused by the pandemic. The process consumers must go through with banks has also changed substantially. Credit Bureau records and financial behavior now weigh more heavily in the fate of a loan than the down payment or contract clauses. So, what can consumers expect in the near future regarding lending?

Currently, the Romanian real estate market has a lower supply than the high demand from solvent buyers. In other words, more and more people now meet banks’ lending criteria. For several years, over 90% of loans granted have been in local currency (RON), and costs have decreased. However, there are still not enough properties for sale. On the other hand, loans granted through the “Noua Casă” program (formerly “Prima Casă”) have lost their relevance, since the program offers only one type of interest rate – a variable one. Right now, variable rates are high, while most market loans include a fixed-rate component. The state could reform the program to target only socially vulnerable consumers who genuinely need help. The program’s only remaining “advantage” is the 5% down payment, compared to a minimum of 15% for standard loans. I say “advantage” in quotation marks because, in reality, the down payment should not be seen as a buyer’s expense. Many clients want to contribute as little as possible for the down payment. I always tell them that the down payment is, metaphorically speaking, my share of the property. If I put down a larger amount, I can say “the kitchen is mine, no mortgage on it.” A higher down payment means a smaller loan from the bank, lower monthly installments, and possibly a shorter loan term.

Banks issue loans based on strict calculations. But a bank looks at the same things I would if someone asked me for money. That means examining what the consumer intends to do with the money, whether they’ve borrowed before, and if they’ve repaid it. For example, delays of over 30 days appear in the Credit Bureau. Living off parents or relying heavily on credit are red flags, as unexpected events can have widespread negative effects. Sources of income are also important. Besides salaries, if consumers earn dividends, the bank will also assess the company’s financial standing. There are currently 27 types of income considered eligible by banks. The most common are salaries, pensions, dividends, and rental income.

If you’re married, your credit score is better because of the dual income. If you have a child, the bank considers you more responsible, which can also boost your score. Beyond these criteria, the scoring done by banks is an internal, mathematical analysis. It’s not like you get two points for being married and three more for having a child. Two colleagues could be equally eligible at a bank, but one might get a lower interest rate because they have a better risk profile.

People should understand that a loan comes with two types of costs: initial costs before taking out the loan—such as notary fees, property appraisal, insurance—which can total around €2,000, and then ongoing loan costs like interest, administration fees allowed by law, and insurance costs. I estimate that over 90% of mortgages in Romania today use fixed interest products for the initial years, because this cost is more reasonable for bank clients. From my perspective, loan contracts today are in the consumer’s favor. Gone are the days when you needed a lawyer to review your credit contract. Since 2016, we’ve seen a normalization of the market, and Romanians’ consumption appetite has driven over 10% annual growth in all credit categories. The only slowdown was in 2022, when the indices used to calculate variable interest rates peaked. The consumer-bank relationship is now balanced, and this strong foundation means we are less vulnerable in the face of a crisis. Most of Romanians’ actual debt is in local currency, which means we are no longer exposed to exchange rate risk. On the contrary, if the leu depreciates, Romanian debt shrinks in foreign currency terms. Furthermore, those facing difficult situations have CSALB to turn to. I’ve guided families toward alternative resolution, because when you’re facing problems, it’s ideal to ask for help from someone who can see things clearly and offer solutions.

Another positive sign has come for non-bank financial institution (NBFI) clients, since lawmakers have capped interest rates. This has created fairer competition in the market, eliminating the large discrepancies we used to see in lending costs. Now, NBFIs must compete with more than just high interest rates.

Looking at how banks assess creditworthiness, I would simplify things by saying that banks typically accept clients with a score between 7 and 10 without issue. For these clients, the only discussion is whether they get the best market rate. Clients with scores below 5 generally won’t get financing from any bank due to their negative credit history. The most dynamic group consists of clients with scores of 5–6. Banks assess whether they want these clients based on their internal policy and scoring models. They may be rejected by one bank and accepted by another.

Alexandru Păunescu, representative of the National Bank of Romania in CSALB’s Coordination Board: “A comparative analysis of requests received by CSALB shows some interesting trends. In the first four months of 2025, of the 1,065 requests submitted by consumers, 830 were addressed to banks and 235 to NBFIs, compared to 1,250 during the same period last year (860 to banks, 390 to NBFIs). At the end of April 2024, 452 requests (36%) sought deletion of records from the Credit Bureau. By the end of April this year, only 190 requests (18%) had this objective.

In the first four months of 2024, 273 deletion requests were addressed to banks and 179 to NBFIs. This year, only 90 were addressed to banks and 100 to NBFIs. In other words, these types of non-negotiable requests have decreased to less than half compared to last year. The number of negotiable requests addressed to banks in the first four months of this year was 740, compared to 587 in the same period last year, indicating a 26% increase.

In conclusion, after years of constantly emphasizing that deletion requests from the Credit Bureau cannot be negotiated through CSALB and must be addressed directly to the creditor who made the registration, it seems these recommendations are now paying off. As a result, the request portfolio sent to CSALB has improved, with much of the non-negotiable ‘ballast’ removed.”

Another conclusion concerns the decreasing share of requests addressed to non-bank financial institutions (NBFIs), accounting for only 22% of the total, compared to 31% during the same period last year. This decline is likely justified by the NBFIs’ consistent refusal to engage in negotiations assisted by CSALB conciliators—refusals motivated by the nature and specific characteristics of the loans granted by these institutions. These loans are generally small amounts (a few thousand lei) and are issued in most cases for very short terms.

Nevertheless, NBFIs maintain their interest in resolving issues directly and amicably with consumers. This year, 121 requests submitted to CSALB have been resolved directly, without the intervention of a conciliator (66 resolved by NBFIs and 55 by banks).

These data—along with the increase this year (compared to 2024) in the volume of mortgage loans and, even more significantly, in consumer loans—paint a picture of growing financial responsibility among consumers. The discipline in repaying borrowed amounts is reflected in the currently low level of non-performing loans. This shows that more and more people are choosing banking products that genuinely match their real needs, and that the financial effort involved can be managed and honored by individual borrowers.”

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  About CSALB: CSALB is an entity established following a European directive, offering free and quick mediation—under three months—between consumers and banks or non-bank financial institutions for ongoing contracts. Consumers from any Romanian county can submit requests to the Alternative Banking Dispute Resolution Center (CSALB) by filling out an online form on www.csalb.ro. If the bank agrees to enter negotiation, a conciliator is appointed. CSALB works with 16 of the top legal and financial experts in Romania. All cases are settled amicably, and the resulting agreement holds the legal power of a court decision.