Whenever your plans cannot be postponed, you always find a support at OTP Bank. This is the reason why we are recomending you a product to help you get to work, the Personal Needs Mortgage Backed Loan.
Creditable amount:
1.000 – 150.000 EUR (LEI equivalent)
Reimbursement period:
6 – 60 months
Maximum codebtors: 3
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Personal needs loan calculator
Characteristics and benefits of the personal needs mortgage backed loan
The amount that can be borrowed is between 1.000 și 150.000 EUR (LEI equivalent).
The reimbursement period is between 6 months and 60 months. The maximum reimbursment period can be up to 240 months, in case of loans used exclusively for the refinancing of other loans granted before 08.07.2020.
You can apply for maximum 75% from the evaluation value of the property mortgaged.
The guarantee of the loan can be represented by a house in your property or owned by somebody else.
You can apply for a loan without an income certificate if the income can be verified in the ANAF database.
You can bring a maximum of 3 co-debtors, to improve the repayment capacity.
OTP Bank accepts a wide range of income types, for granting the credit.
What are the costs of a personal needs mortgage backed loan?
Variable interest rate
The annual interest rate is 10,40% (made up of the IRCC index and the fixed margin 4,5%). You can consult the detailed interest rate list here.
Commissions
0% analysis fee;
0% monthly credit administration fee;
0% early repayment fee.
0 lei commission for opening and administration of a current account if you have a OTP Lejer package; The complete list of rates and commissions can be consulted here.
Fees charged by third parties
The cost for evaluating the guarantee by an evaluator authorized by the National Association of Authorized Evaluators in Romania (ANEVAR), according to the option expressed by you.
Fees charged by the National Register of Mobile Advertising (RNPM) for the registration of movable guarantees.
The cost of insurance: the compulsory home insurance (PAD), the optional real estate insurance that constitutes the credit guarantee and the life insurance (if you opted for it);
Notary fees and fees related to the registration / re-registration / modification / cancellation of real estate guarantees in / from the Land Book, which are established according to the fees charged by notaries public and the Office of Cadastre and Real Estate Advertising;
How to access the Personal needs mortgage backed loan?
Come to any OTP Bank branch in your city to discuss the most advantageous option for you.
Some eligibility criteria to consider:
Be over 26 years old at the time of application, but up to 70 years old at the date of the final maturity of the loan. Persons who will be over 65 years of age on the date of the final maturity must present a life insurance valid on the date of signing the credit agreement, assigned in favor of OTP Bank and valid for the entire contractual period.
To be a Romanian citizen domiciled / resident in Romania or a foreign citizen resident in Romania;
Have a length of service, as an employee of:
- Minimum 3 months at the current employer and in the last 12 months total uninterrupted experience or
- Minimum 6 months experience with the current employer. If you have a PFA, you have at least 12 months of activity. For the other types of income accepted, described below, seniority is communicated in the Territorial Units and depends on the type of income presented.
Details for Life Insurance and Life and Unemployment Insurance
Choose the Life Insurance or Life and Unemployment Insurance
For a more secure future and financial stability, OTP Bank offers you the possibility to add a Life Insurance policy or a Life and Unemployment Policy (PPI) to the Personal Needs Mortgage Backed Loan, having the following main characteristics:
- The insurance policy can be issued at the time of granting the loan or at any time during the credit period.
- The validity of the policy starts from the moment of signing the insurance policy, and ends at the final maturity of the loan.
- The minimum period of the insurance policy is 1 year.
The risks covered by Life Insurance are:
Socio -professional status |
Death due to any cause |
Total permanent disability from the accident |
All categories |
X |
X |
The risks covered by Life and Unemployment Insurance are different, depending on the socio-professional category to which the client belongs (Employees, Freelancers or Pensioners):
Socio -professional status |
Death due to any cause |
Total permanent disability from any reason |
Involuntary unemployment |
Temporary disability due to accident |
Employee |
X |
X |
X |
|
Freelancer |
X |
X |
|
X |
Retired |
X |
|
|
|
Types of necessary guarantees
In order to obtain a personal needs mortgage backed loan from OTP Bank you must present the following types of guarantees:
First rank Mortgage on the property set up as guarantee; a subsequent mortgage is accepted temporarily, only in case the first rank mortgage is also in the favour of OTP Bank România. Temporary, it can be acceped a subsequent mortgage in case of refinancing another mortgage loan with mortgage on the same imovable, for which there is a mortgage established in favor of another creditor;
Mandatory property insurance policy (PAD) and facultative insurance policy for the imovable brought as guarantee, both assigned in favour of OTP Bank Romania S.A and concluded with an authorized insurance company.
Movable Mortgage on all credit balances of current accounts;
Insurance policy against death from any cause (if the case), assigned in favour of OTP Bank Romania S.A.
How can you apply for the Loan?
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let's talk about the most appropriate option.
What do you have to do to get the Personal needs mortgage backed loan?
To simplify things, we made a summary of the steps you need to take. We are at your side at every step and we inform you of all the costs needed to be paid, as well as the documents you need in order to meet the eligibility criteria.
The steps we will take together are:
1. Preliminary discussion: We meet and verify the lending conditions, perform a preliminary calculation and inform you relating to the necessary documents.
2. Credit application: fill in and present the following documents directly in the branch:
Identity card (original);
Agreement for consulting the revenues from the ANAF database or Income certificate in case of clients for which the revenues are not reported to ANAF (eg employees of MAI, MApN, SRI, Gendarmerie, etc.) or supporting documents for other types of revenues collected if they cannot be verified in the ANAF database;
Credit application (original, standardized form of the bank), which includes:
- Declaration on payment obligations, disputes with third parties and group relations;
- Credit Risk Central Consultation Agreement (CRC);
- Credit Bureau consultation agreement;
Supporting documents regarding the refinancing of the existing loans (if applicable).
Documents regarding the building that is the object of the Credit Application:
- Documents proving the property right over the building, such as: deed of sale-purchase, deed of donation, etc.
- Closing of tabulation or Land book extract;
- Pre-sale-purchase contract (if any);
OTP Bank reserves the right to request additional documents on a case-by-case basis.3. Preparation and presentation of the evaluation report: follows the inspection of the building and preparation of the evaluation report by the authorized appraiser, member of the National Association of Authorized Appraisers in Romania.
4. Final approval: what was more difficult has passed! When your application is approved, you are invited to the branch to sign the European Standardized Information Sheet (EFSI).
5. Signing the contracts: you conclude the real estate insurance policies, you sign the credit and mortgage contracts and you receive a schedule to follow for the payment of the monthly installments.
6. Granting the loan: after presenting to the bank the conclusion of the tabulation and the extract of the Land Book with the mortgage in favor of OTP Bank, you can enjoy the loan amount.
Which are the incomes accepted for Personal needs mortgage backed loan
In order to obtain your Mortgage Loan, OTP Bank accepts a wide range of incomes:
Main incomes:
- Incomes from salary;
- Income from management contracts;
- Monthly pay, indemnities, increments, food allowance and other rights having a continuity nature;
- Parental allowances;
- Income from copyright or intellectual property rights;
- Income from management or censorship benefits;
- Retirement income from Romania / abroad;
- Commercial incomes (e.g.: provision of services etc., other than the liberal professions);
- Income from life annuities;
- Income obtained by navigators based on navigation contracts;
- Income from renting properties;
- Income from dividends;
- Income from liberal professions.
Secondary incomes:
- Income from management contracts;
- Food vouchers;
- Salary received by Romanian citizens abroad;
- Income from agent/representation/brokerage agreements / civil agreements/conventions;
- Incomes from abroad.
Representative calculation example
Personal Needs Mortgage Backed Loan |
Representative example |
Loan amount |
331,000 lei |
Credit duration / Number of installments |
57 months / installments |
Interest rate Interest rate type |
10,40% Variable (IRCC+fix margin 4,5% per year) |
Analysis commission |
0 lei |
Monthly current account administration fee |
5 lei |
Monthly installment |
7,384 lei |
Total cost of loan |
90,150 lei |
Total payment amount |
421,150 lei |
APR |
10,94% |
The following costs applied by third parties are not known to the creditor and, consequently, are not included in the calculation of the APR: property valuation tax and insurance costs, notary fees as well as authentication of the mortgage contract, the fee for the registration of the movable mortgage in RNPM. These will be charged according to the tariff practiced by the respective service provider.
These loans have variable interest rate on the entire period of the loan, expressed based on a reference banking index IRCC. The value of the index published by the regulation authority (NBR) can fluctuate, therefore the monthly installments will increase or decrease.
At the same time, the fluctuation of your own income can lead to affecting the possibility of payment.
Frequently Asked Questions
What is the minimum accepted income?
To approve the loan, your monthly net minimum salary must be at least 2.079 lei. If you get income from several employers, we will cumulate them as long as at least one of the incomes is the equivalent of the minimum wage in the economy.
Can I apply for a personal needs mortgage backed loan as a retired person?
Yes, if you are retired and your retirement decision is final or reviewable *, depending on your needs and plans, you can apply for a personal needs mortgage backed loan.
* In the case of the pension with periodic review, the credit will be granted only for the period equal to the number of months remaining until the expiration of the decision, respecting the minimum duration of the product.
What insurance is required for a personal needs mortgage backed loan?
In the case of the personal needs mortgage backed loan, it is necessary to insure the property brought as guarantee for the entire crediting period (optional insurance policy and compulsory PAD policy).
Persons who will be over 65 years of age on the date of the final maturity must present a life insurance valid on the date of signing the credit agreement, assigned in favor of OTP Bank and valid for the entire contractual period.
What are the possibilities for repaying the loan?
To pay the installments related to your loan, you can either go to the OTP Bank branches, or make transfers to your current account (from where the amount due at maturity will be withdrawn). If the credit is in a currency other than the one in which the current account was opened, the currency exchange will take place automatically on the due date.
What conditions must a home meet in order to be mortgaged?
In order to be mortgaged, the home must meet the following criteria:
• to represent a property for living: house, villa, apartment
• to be a tabulated house.
• be free of burdens, except the case of refinancing loans backed with mortgage on the same immovable, for which there is a mortgage concluded in the favour of another creditor until the takeover moment
• to be included in the civil circuit
• be located within the built-up area of a locality
• not to be damaged, incomplete or in an advanced stage of deterioration
How much is the cash withdrawal fee from the current account for the personal needs mortgage backed loan?
The credit funds granted can be withdraw from the current account with special destination opened by the customer at the Bank.
Which Loans can be refinanced?
Through the personal needs mortgaged backed loan from OTP Bank you can ask for:
• refinancing of personal Loan with / without mortgage;
• refinancing of mortgage Loan for house acquisition;
• refinancing of credit card;
• refinancing of overdraft.
The credit facilities to be refinanced must be at least 3 months old.
What do labour interruptions represent?
Labour interruptions are the time period when you have not had a professional activity. The following are not considered to be interruptions: maternity leave, sick leave, military service, study leave, temporary working disability leave.
For what period can I apply for a loan if I have a fixed-term employment contract?
In case your contract is concluded for at least 1 year period and has been renewed or it has an automatic prolongation clause, you can apply for a loan on the maxim tenor. On the contrary, you can apply for a loan for the maximum remaining period until the expiration of the labour contract, observing the minimum duration set for the respective loan.
What are the steps to take when I want to get a Loan?
In order to obtain information about our Loans, you must visit any OTP Bank unit or contact the Call Center service at the following telephone number: 0800 88 22 88 (free of charge from any fixed or mobile network in Romania) or at +4021 308 57 10 (also from abroad) from Monday to Friday between 8:30 and 21:00.
In order to know what is the maximum amount you can obtain, ask for an informative budget calculation based on net monthly earnings. If you meet the lending conditions and decide to apply for such a Loan, it is necessary to come to any OTP Bank unit with the required documents for the Loan.
The steps for contracting a Loan are:
• performing the preliminary calculation and signing the necessary documents in order to generate the customized offer;
• submitting the loan request and the income documents for the analysis of the loan;
• submitting the documents for the immovable/ land and evaluation of the property – for the mortgage backed loans
• signing the loan contract and mortgage contract (will be realized in the OTP Bank unit)
Can I repay the loan in advance?
Yes, you can repay the loan in advance, and the early repayment can be total or partial. No commission is charged for this operation.
We are waiting for you with your identity document in the nearest OTP Bank Romania branch to do the related operations.