What is a loan?
A loan refers to the lending of money, a contract between two parties – a party granting the loan (the creditor), and a party benefiting/receiving the loan (the debtor). The amount of the loan is called the principal.
In addition to the principal, there are also terms such as interest rate and fees, which refer to the costs of the loan.
The loan is granted for a period that can be split up into monthly installments, during the 3 categories:
- the use period of the loan, in which the debtor uses the money and in which he/she does not repay the borrowed principal;
- the grace period, in which the debtor ended the use of the funds;
- he repayment period, in which the debtor pays back the borrowed amount (principal and interest).
What is FINS loan?
The FINS loan is a loan intended to cover costs during studies abroad, a flexible financing line, precisely tailored to the needs of students. A FINS loan can cover both tuition fees and accommodation, food, transportation expenses, other personal expenses, study materials etc. during studies. To apply, you don’t need previous income, a job or most often, even a co-signer, as FINS loans are based on the academic and professional history of the applicant. FINS loan is a flexible loan, designed for students, who benefit from a grace period during studies and for up to 12 months after completing the studies.
What type of loan is the FINS loan?
FINS loans fall in the category of consumer loans, being a loan granted to students for undergraduate studies or postgraduate studies. Unlike the conventional loans granted by banks, FINS loans do not require income history, a job, or, in most cases, a co-signer, but are focused on anlysing the academic and professional profile of the applicants.
What is a loan agreement / contract?
The loan agreement or contract is the convention based on which a creditor grants a loan to a debtor. The loan agreement is a formal document that includes all terms and details of the loan.
What is the use period?
The use period is the period in which the customer/debtor receives money from the creditor, i.e. the financial institution from which he/she borrows, in this case, FINS.
What is the grace period?
The grace period is the period running from the end of the use period, in which the debtor does not start the loan repayment (he/she pays only the interest and the fee established by the creditor in advance). During the grace period, the debtor can dedicate himself/herself to finding a job, tending to personal plans, etc., without the concern for a high installment, according to the loan repayment schedule.
What is a repayment schedule?
The repayment schedule refers to the loan repayment scheme, divided into monthly instalments, during the agreed upon period . The repayment schedule contains the details of your loan, the status of installments, terms and conditions of payment, the interest charged, and potential additional costs.
You can see how a repayment schedule looks like by accessing the FINS loan calculator.
See how much you can borrow with FINS!
What is the repayment period?
The period in which the debtor pays back the loan (the borrowed principal) and the costs related to the loan, i.e. interest and fee.
What is the repayment period of the FINS loan?
Depending on the loan type, from 5 years for loans for Master’s studies and up to 10 years for Bachelor’s studies, abroad.
How can the FINS loan be repaid?
FINS loan can be repaid monthly, according to the repayment schedule. The loan can also be repaid early, either in part or in whole, without any additional costs, before the end of the repayment period.
What is early repayment?
An advance payment, either partial (e.g.: 3 installments) or total – in which the entire balance of the loan is paid. FINS does not charge additional costs for early repayment, as compared to other banking institutions.
What is a loan use schedule?
The use schedule is the loan use scheme, agreed upon with the debtor, according to their needs. The use can be done in stages, or for the whole amount. With FINS, the student will benefit from loan staggering, according to his/her needs, in order not to have the interest calculated at an amount that he/she will not need immediately.
What does the total payable amount of the loan include?
The total payable amount of the loan consists of: principal – borrowed amount, current interest – calculated based on the balance of the loan – and fees.
What is the loan awarding fee?
The analysis fee is the amount due covering the expenses incurred during the loan granting process. For example, the fee for interrogating/verifying the Credit Bureau, internal costs resulting from file analysis, the fee owed to third parties in the case of a loan granted through intermediaries, etc.
What is the monthly commission?
The fee for account management services, i.e. monthly processing of data, verification of payments made, notifications’ remittance, etc.
What is loan balance?
The current value of the loan granted; it can be lower than the total value of the loan during the period of use and after the debtor starts paying the loan. For example: the loan is 10.000 EUR, but on day x the loan balance may be 8.500 EUR.
What does principal mean (term used in the repayment schedule)?
The balance of the loan is also named principal.
What is the interest?
The interest is the cost of the loan, the instrument calculated to offset the interest that the creditor pays in turn (even governments pay interests) for the risks assumed when it grants a loan, as well as the fact that it cannot use the amount subject to lending, as long as the debtor uses it. There are several ways to calculate interest; it can be fixed or variable, as the case may be.
What is EURIBOR?
EURIBOR (Euro Interbank Offered Rate) is the reference rate, announced by the European Central Bank (ECB) and an indicator of interest rates for loans in EUR, based on which participating banks in the EU monetary area lend to each other. In addition to the EURIBOR index established at central level, in the case of a loan contracted by a customer, there is also a margin that includes country risk, the cost of minimum required reserves and the bank’s safety margin.
What is APR?
The annual percentage rate (APR) expresses, as a percentage, the total cost of a loan. APR transforms the fees related to a loan to an annualized interest rate.
What is the Credit Risk Processing Authorization?
The creditor verifies future debtors, to make sure that they don’t have outstanding debts for other loans in progress. To verify the quality and reputation of future debtors, the creditor needs their agreement for the respective checks in the Credit Bureau and Central Credit Register. Also, in case of payment delays of customers, without them notifying FINS about their financial situation, in order to be able to find a solution, FINS will send the related notifications to be registered in the mentioned databases.
What is an income statement?
The income statement is a document that certifies the income attained during a recent period.
What is a co-signer?
The co-signer guarantees, within a loan agreement, and becomes liable for the payment of installments, in case the borrower fails to pay his/her duties on time, and can also be subject to enforcement.
What is the difference between co-signer and guarantor?
The co-signer is a participant in the loan, his/her income being calculated, together with those of the loan applicant, to obtain a higher borrowed amount. If the applicant fails to fulfill his/her obligations, the co-signer is required to pay the due amounts.
The guarantor does not participate with his/her income to calculate the loan, but he/she has the obligation to pay the debts of the debtor if he/she fails to repay the loan.
How do I apply?
Do you have everything ready? Apply online!