Early loan repayment is one of the most efficient financial decisions when you have an unexpected sum. The practical question isn't whether it's worth it but exactly how much you save.
Quick answer
Early repayment is an absolute right under GEO 50/2010 art. 66. Maximum fee: 1% under a year to maturity, 0.5% over, 0% on variable mortgages. Use our calculator.
How the calculation works
For a personal loan with 9.45% APR, 47,500 lei remaining balance, 36 months left, monthly rate 1,518 lei: total to pay over remaining period is 54,648 lei. Full early repayment now: 48,040 lei. Net saving: 6,608 lei.
Roman Dumitrescu, former BCR risk analyst: "A reader, Diana, 36, accountant in Cluj, received a 23,750 lei bonus. I ran 3 scenarios for her loan with 47,500 lei balance: Tezaur 3-year (5,275 lei cumulative), partial repayment reducing rate (1,785 lei), partial repayment reducing period (2,382 lei net). Lesson: calculation beats intuition."
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Frequently asked questions
What's the maximum early repayment fee in Romania?
Under GEO 50/2010 art. 67, the maximum fee is 1% of the amount repaid early if more than a year remains to maturity, and 0.5% if less than a year. For variable-rate mortgages, the fee is 0% completely free.
How is the exact saving calculated?
Saving = total interest that would have been paid over the remaining period - interest calculated for the actual period plus the early repayment fee.
Partial or full repayment, which is better?
Depends on your goal. Full repayment closes the loan and saves maximum interest. Partial repayment either reduces monthly rate (period stays same) or reduces period (rate stays same).
Can the bank refuse early repayment?
No. Under GEO 50/2010 art. 66, you have absolute right to partial or full early repayment at any time. Bank refusal is illegal grounds for ANPC complaint.
How does the request work in practice?
Notify the bank 10-15 business days in advance (varies by contract), preferably in writing via internet banking or email. Bank responds with exact payment amount and processing date.