APR (DAE)
The total yearly cost of a loan, interest and every fee included, as a percentage.
What is the APR (DAE)?
APR, the annual percentage rate (DAE in Romanian), tells you what a loan really costs a year: it adds up interest, arrangement and administration fees, and compulsory insurance.
Two loans with the same interest rate can have very different APRs if one carries large fees. That is why the law makes lenders show the APR in offers and contracts. It is the standard number for comparing offers of the same amount and term; read it alongside the total amount repayable and the type of interest rate.
For non-bank lenders (IFNs), Romanian Law 243/2024 caps the APR on consumer loans at the BNR Lombard rate plus 27 percentage points, about 34.5% a year. For sums up to 25,000 lei the cost is capped per day, and the total repaid cannot exceed twice the sum borrowed.
Compound interest works here too. A debt growing at 30% a year doubles in under three years. If you miss repayments, the balance grows by the interest and penalties in the contract, which may differ from the APR.
On 10,000 lei, a cost of 30% a year means about 3,000 lei in the first year.
What is the difference between interest rate and APR?
The interest rate is the price of the borrowed money. The APR adds fees and compulsory insurance, so it shows the loan's total yearly cost.
Is there a maximum APR in Romania?
For consumer loans from non-bank lenders, yes: the BNR Lombard rate plus 27 percentage points, about 34.5% a year at a 7.5% Lombard rate. The law does not apply to commercial banks.
Related terms
Sources
- Fiscal Code, consolidated text published by ANAF · static.anaf.ro
Checked on 27 September 2026. Rules and figures can change.
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