The results of the study showed that 60% of borrowers do not know the difference between a bank and a non-bank financial institution, also called an IFN, writes Paul Angel, director of ANPC, on his social media account.

Also, Angel adds, it was concluded that: 2 out of 5 Romanians do not have access to financial products and services, and the level of use of basic financial services is the lowest in Europe.

Banks are much better legislated and regulated compared to IFNs.

The bank has a much more complex functionality compared to the IFN, which provides loans. A bank is an entity whose activities consist mainly of attracting deposits or other funds from the public, providing loans, payment services, issuing guarantees and accepting obligations, trading on its own account and/or on its own account in accordance with laws, issuing and administration of means of payment, etc.

The cost of loans offered by banks is significantly lower compared to IFN. Not all IFNs have the same value!

Customers who wish to access credit are advised to analyze the annual effective percentage (APR) before signing the credit agreement in order not to pay too high costs and to compare several loan offers.

Credit requirements and documentation may be more simplified in IFN, but the important thing is not the speed/ease with which you get the loan, but that the cost of the loan is lower and you have the opportunity to repay the loan as easily as possible.

I recommend that you read the contract before signing and ask where there are unclear terms, and also make sure that you have done a proper analysis of the ability to repay the loan.

During the development of the loan, there may be risks related to the increase of interest, if the interest is variable in relation to the exchange rate and the inability to pay due to loss/reduction of income.

Carefully read the information about penalty interest in contracts.

And beware of interest-free loans in the first stage, you may find yourself paying more later.