In what cases is it rational to take a loan?

If the amount of your savings is not enough to finance a desired purchase. Before applying for a loan, we recommend considering how rational this step is.

Take into account the following:

A too big loan can lead to problems with repayment. Take exactly as much as you can afford to repay without extra effort and be 100% sure that you are informed about all expenses (interest / fees).

Example of calculating the optimal monthly repayment:

Monthly loan repayments should not exceed 70% of your monthly savings. For example, if the income = 1000 lei and the expenses = 800 lei, then the savings = 200 lei. The maximum amount of monthly payment should be 140 lei.

Savings are the difference between what you earn and what you spend. Include the income you are fully confident of receiving every month.

Avoid taking out several loans at the same time: having more than one loan puts you in front of a greater risk of over-indebtedness. The amount of the monthly payment for each loan may seem relatively small, but the total amount you pay will become a heavy burden on your family budget
Avoid taking credits for desired, but unnecessary items

The rational purposes of contracting a loan include:

Launching your own business, that will bring you income in the future
Purchasing the property: repaying the loan, you own property and do not throw the money in the wind
Personal education and training: a higher qualification must bring a higher income in the future
Home improvement: for example – repairs made with the aim of saving electricity or purchasing energy efficient appliances helps you save money on bills

Risky purposes of contracting a loan include:

Coverage of other debts
Holidays and luxury items
Parties and gifts

Source: http://mfc.org.pl/check-your-financial-health/

Choose your financial partner in an informed and responsible way.

GMW March 25-31, 2019

www.globalmoneyweek.org

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Pre-contractual information

STATEMENT OF ACCEPTANCE OF THE CREDIT OFFER, ______
(related to entrepreneurial activity)

I, the undersigned, ________________, identified by ___________, series ___, number ________, issued by ___________, on ____________, personal code ____________, declare in full knowledge that the Creditor has made it available to me, and I have made known and accept the following below:

1. Name and Contact Information of the Creditor
Creditor
Address
Phone number
Email Address
Web page

2. Description of main Characteristics of the Credit Product (offer)

Type of loan

Total loan amount

Conditions governing the drawdown of the credit
It means how and when to get money

Depending on the terms of the credit product and the contractual provisions individually negotiated by the parties, the provision will be made by bank transfer to the account indicated by the Debtor or in cash, at the creditor's cashiers, or (at the Debtor's choice) by direct transfer to the Creditor's Partner, after signing the credit agreement and verifying the fulfillment of the eligibility conditions.

Term of credit agreement, months

The credit is granted for a fixed period of time, and its reimbursement is obligatory It is possible to extend the term of the loan for new periods provided that the Debtor meets the eligibility conditions of the Creditor.

Loan purpose:

For entrepreneurial / professional activity (trade, production, services, etc.)

The order and rates in which they will be allocated.
The following should be repaid:

monthly installments of

Date	Credit rate	Interest rate	Commission	Total to be paid

These numbers can vary slightly depending of the day of actual credit disbursement

The amount of the first payment represents the commission for the services provided for the loan usage, calculated from the total value of the loan, and paid by the Debtor on the date of granting the loan from own sources or deducted by the Creditor from the loan amount on Debtor choice.

Interest and/or charges are to be paid in the following order

monthly

Total amount to be paid

Total cost of credit

Means amount of borrowed capital plus interest and possible costs related to credit

These numbers can vary slightly depending of the day of actual credit disbursement

Necessary guarantees

Guarantee and/or pledge.

Repayments do not lead to immediate amortization of the capital

Repayments can lead to immediate amortization of the capital

3. Costs of the credit
Rates related to the credit
Annual Percentage Rate of Charge (APR) This is the total cost expressed as an annual percentage of the total amount of credit. The APR is there to help you compare different offers	%
In order to obtain the loan in accordance with the agreed terms and conditions, it is mandatory to conclude an insurance contract to guarantee the loan or a contract for another ancillary service.
Related costs
Any other costs deriving from the credit agreement	Fee for services rendered in relation to usage of credit, calculated and paid as follows: of the credit and paid by the Debtor on the date of granting the credit from own sources or is deducted by the Creditor from the amount of the credit The negotiation / prolongation of the credit can take place by mutual agreement of the parties, by signing an additional agreement, the Creditor being entitled to request an increase in the interest rate within the limits provided by the legislation in force. In case of negotiation / prolongation of the loan, the Borrower shall pay to the Creditor, at the date of the negotiation / prolongation a commission in the amount of 2% from the credit balance at the time of negotiation / prolongation.
Conditions under which the costs related to the credit agreement can be changed	The Sides can change the costs related to the credit by written agreement signed by both parties; For the non-constitution of the guarantees within the agreed term, the Creditor is entitled to calculate, and the Client will pay to the Creditor an Interest of delay in the amount of 5% annually, applied to of the daily balance for each day of delay, starting with the date following the term established for the constitution of the guarantee/ s and until the date of the proper execution of the respective obligation.
Obligation to pay for notarial fees / mortgage registration fees / fees for noting the prohibition of pledge in the Transport Register related to the pledge of means of transport (agricultural machinery)	Paid by the Client , except as otherwise provided in the pledge / mortgage agreement.
The cost for the valuation of real estate proposed in pledge	Paid by the Client directly to the Evaluator
Costs in the case of late payments Missing payments could have severe consequences for you (e.g. forced sale) and make obtaining credit more difficult
The repayment of the loan is free of charge in the secondary offices of the Creditor, as well as at the discretion of the Debtor through the representatives authorized to collect loan payments. The list of which and their fees are published on the website of the Creditor (www.microinvest.md/cum-achiti-creditul/). In case the Debtor use payment methods with fee, the Debtor cover all the costs of repayment of the loan and undertake to make the payments in such a way that the Creditor receives the agreed repayment amount and without any deductions by third parties processing the refund payment.
In accordance with and arising from the provisions of art. 15, para. 7), lit. a) from Law no. 202/2013, any payments related to the granted credit (commissions, taxes, penalties, late interest and any other type of payment), except interest, will be applied and collected within the limit of the ceiling of 0.04% of the total value of the credit per credit day multiplied by the number of days of actual use of the credit (hereinafter 'Ceiling'). Therefore, the Lender will be entitled to apply and collect the costs, excluding interest, exactly in the fixed or percentage amount established in the contract if the said ceiling allows, and if the ceiling is lower than the value of at least one cost, excluding interest, then the Lender will be entitled to reduce the fixed/percentage amount and apply and collect any of the applicable costs only within the limit of the ceiling value. When calculating the ceiling, the costs already applied and collected will be taken into account, with the exception of interest, which reduces its value. (Representative example: if the amount of the penalty is 20 MDL per day, and the ceiling value at that time is 16 MDL, then a maximum of 16 MDL will be collected).

4. Other important legal aspects
Right of withdrawal You have the right to withdraw from the credit agreement within a period of 14 calendar days	Yes
Early repayment You have the right to repay the credit early at any time in full or partially	Yes
The creditor is entitled to compensation in the case of early repayment The Debtor may repay the loan in full or in part in advance, notifying the Creditor in writing 3 days in advance, and paying an early repayment fee of:	% from early repaid amount, if the period of time between the date of early repayment and convened maturity exceeds one year; % from early repaid amount.The early repayment can be made only if the Debtor has no outstanding debts on interest or other amounts to be paid in accordance with the Contract. % from early repaid amount, if the period of time between the date of early repayment and convened maturity does not exceed one year.
Database usage The creditor must inform you immediately and without charge of the result of a consultation of a database, if a credit application is rejected on the basis of such a consultation. This does not apply if the provision of such information is prohibited by law or is contrary to objectives of public policy or public security The parties may agree on additional terms and conditions, which will be included in the credit agreement.	Yes
Right to a draft credit agreement You have the right, upon request, to obtain a copy of the draft credit agreement free of charge. This provision does not apply if the creditor, at the time of the request, is unwilling to proceed to the conclusion of the credit agreement with you	Yes
The period of time during which the creditor is bound by the pre-contractual obligations	This offer is valid for 15 calendar days after it is issued.
In this regard, I subsequently declare that: I was provided with the necessary information, the essential characteristics of the above-mentioned credit product were explained (interest rate, number of commissions, credit costs, early repayment conditions, total amount to be paid), as well as the consequences of non-compliance with contractual clauses; the costs included in the total cost of the loan were explained to me, including the costs for ancillary services related to the credit agreement; I was offered the possibility to negotiate individually the contractual clauses in the credit agreement that I intend to sign, I negotiated individually the granting commission, the monthly commission, the amount of penalties and I mention that its clauses do not disadvantage me, being fair in the report mine with the creditor; I was asked by the creditor about the probable importance of the information provided and whether essential circumstances that I expected to be provided were not omitted in order to make an informed and rational decision about concluding the potential credit agreement. the information provided and the corresponding explanations allowed me to assess, including the personal analysis of other offers of third party creditors, whether the proposed credit agreement is tailored to my needs and financial situation; I know the content of the contract and all its conditions have been explained to me, I have understood and accepted them, and the documents and information underlying the conclusion of the contract are complete and accurate; I know the law, the normative acts that will govern the contract, as well as the lack of consumer quality; I have no ambiguities or misunderstandings regarding the terms of the contract; the credit product corresponds to the purpose described above and will be used according to the destination and the economic activity carried out. The assets procured/resulted/constructed/repaired from received loan sources will be registered/transmitted in the social capital of the company where my business activity is carried out and/or will be used jointly by the members or individually however strictly for running my business activity. (Signature)

Client's Name
Client's Surname
Personal Identity Number
Currency
Term
Rate
Amount
Monthly payment
Amount to receive
Purpose
Comments