Before taking the decision to raise a loan, one should assess the necessity of this and choose the suitable product. The person should adjust the loan repayment schedule quantitatively and chronologically in accordance with the personal incomes. An inadequate assessment of the loan and an eventual excessive indebtedness can affect the debtor’s credit history, the National Bank of Moldova warned in a presentation during the Open Doors Day, IPN reports.

Specialists warn the debtors that this is a commitment undertaken for many years that significantly influences their life. Before asking for any kind of lending instrument, the first recommended step is to seriously analyze the need of obtaining that product. The thorough analysis of the credit contract before signing this is also essential.

The contract clauses that enable the creditor to unilaterally modify the contract provisions without concluding an additional agreement are banned, as are the clauses by which the consumer is obliged to keep the contract provisions confident, to choose one of the insurers accepted by the creditor or to pay the interest in another currency than the one in which the loan was provided and by which the creditor can penalize the consumer if its reputation is affected.

According to specialists, the persons can decide which of the product on the market is the most advantageous one for them by comparing lending costs, including the interest, commissions, taxes and any other type of costs incurred by the consumer and which are known by the creditor, except for notarial taxes.

The effective annual interest rate is the total cost of the loan for the consumer expressed in annual percentage of the total value of the loan. If the interest rate is floating, the annual effective interest is calculated based on the hypothesis that the interest rate on the loan and the other costs will remain unchanged. The absolute cost is the sum that is to be paid at the end of the lending period if the loan is repaid as agreed.