Loans could become cheaper through reorientation towards a different currency, but some new commissions and costs could appear for the currency exchange.

More banks are allowing the change of the currency on which the loan has been taken. The currency conversion means, for example, the change of the currency for a loan made in lei to euro, without changing the bank and obtaining a larger loan. Advantages: the credit becomes cheaper because the "move"is made towards a more attractive currency.

On the list of the banks which allow customers to change the currency of the loan are BRD, BCR, Alpha Bank, Bancpost, Piraeus Bank and Garanti Bank. The conversion is different than refinancing, which can be made through contracting a loan from another bank that requires the payment of the commission for anticipated repayment, for the one granting the new loan.

Banks can perceive commissions in the case the currency of the loan is switched, but these are usually smaller than those required for refinancing, in order to avoid the customers migration to other financing institutions. Those who are changing the currency of the credit will support the costs of the currency exchange. On the other hand, the currency conversion of the credit is made, in the majority of cases, without the bank's solicitation for a proof on the person's incomes.

Migrations for lower interests

Those who are changing currencies in which they have loaned are re orientating towards cheaper currencies. "The customer's options to change the currency for the previously granted credit is owed mainly to the lower level of the interests for credits in the new currency", according to the Garanti Bank's representatives.

They say that they have noticed the customers preference towards changing lei credits into euro credits and euro credits into Swiss francs. Credits in francs have the lowest initial cost, but at the same time they can prove more expensive than in the moment of the contracting. At the same time, credits in euro are cheaper than credits in lei. Representatives of the credits broker Morgage Capital Group are anticipating a Romanian's run away from exotic currencies.

"We are estimating an increase of the number of customers that will convert their credits, especially those who loaned themselves in exotic currencies, especially Swiss francs", said Bogdan Furca, managing partner at the mentioned company.

Banks strategies

BRD allows the customers only the switch in lei of the credits in euro. Those who can escape, in this way, the currency risk (the lei depreciation leads to the growth of the sums owed every month). The bank doesn't practice commissions in the case of the loan conversion, the only cost supported by customers will be the currency exchange.The mentioned banking institution doesn't have an offer for loans in exotic currencies. Different from other banks, Garanti Bank considers the currency conversion as an internal refinancing and perceives the repayment commission anticipated for the old loan, and for the new loan. The bank allows customers to make the conversion in any currency available for credits. ALTERNATIVE

Refinancing can reduce also the credit's cost

Those who lent money can appeal to refinancing s in order to reach a cheaper credit. Refinancing means contracting a new credit which will pay the old credit. The advance acquittal of the old loan means in most of the times the payment of an anticipated repayment commission, which can raise up to 5% of the sum that was due payment.  At the same time, contracting a new loan assumes in many cases the payment of a granting commission.

This, "together"with all the papers that must be submitted at the bank and a document from the first bank that must show how large is the loan that is going to be refinanced. The refinancing letter can cost up to 150 euro.