Well, sometimes you need more money for bigger plans. We’ll also tell you when it makes sense to take out a loan and when it’s not necessarily the right time. 

First off, a personal loan is granted for up to 5 years, so before you apply, it’s worth thinking carefully about your medium-term plans. 

What projects or plans could a loan help you with?

1. Major home, garden or apartment renovations or redecorating

When you own a house or an apartment and want to change the way it looks quite a lot, a loan like this can help you buy all the materials and then spread the cost month by month over the loan term.

If the renovation you’re planning isn’t very costly, another idea would be to apply for a Star shopping card — which gives you a credit line of up to five monthly salaries and lets you pay in up to 18 interest-free instalments at leading retailers.

 ❗ Until May 14 there’s an offer on the bundle of personal loan with insurance and a Star card — you get a fixed interest rate of 6.5% and 100 lei in points on the card. Apply here.

2. Buying a car

Here you should compare the total costs of a loan versus leasing and what matters to you over the next 5 years. For example, leasing typically comes with obligations such as extra insurance or servicing at specific locations.

3. Relocating

If you’re moving to a new city, maybe even a new country, you’ll need a financial buffer to cover the first months’ rent and various costs for furnishing and outfitting your new home, etc. In this case, a personal loan may be the best solution — all the more so if your income is set to increase over the medium term.

When should you not apply for a loan?

• When there are other options that may help, such as credit cards, which also give you a line of credit for purchases, or mortgages.
• When you feel it would be too hard to repay, or you’re not sure about your medium-term plans.
• When you don’t truly need it — you shouldn’t take out a loan to go on holiday or to buy clothes, a phone or other things that are wants rather than needs.

If you decide to apply for a loan, catch the #GoodVibesOnly offer.

Reduced interest rate and many other benefits.

Editor: Cristina Grivase, Marketing Specialist Banca Transilvania