What to remember
- Affordability starts with your budget, not the bank’s maximum.
- A longer term may increase the total borrowing cost.
- Check how much cash you actually receive after fees.
Start with your monthly budget
List reliable income, living costs, existing commitments and money needed for unexpected expenses. Do not rely only on uncertain bonuses. Test a lower-income or higher-expense month. The maximum a bank might approve is not necessarily the amount that suits your budget.
Longer term: lower payment, more interest
This illustration borrows ALL 500,000 at a fixed 8.00% nominal rate with equal monthly repayments and no fees. Over 36 months, the payment is about ALL 15,668; over 60 months, about ALL 10,138. The monthly payment falls but total repayments rise. Figures are rounded, use annual rate divided by 12, and exclude insurance and other costs. The rate is an assumption, not a current offer.
| Term | Monthly payment | Total repayment | Total interest |
|---|---|---|---|
| 36 months | ALL 15,668 | ALL 564,055 | ALL 64,055 |
| 60 months | ALL 10,138 | ALL 608,292 | ALL 108,292 |
Illustration, not a bank offer. These figures are assumptions used to explain the calculation.
Contract amount versus cash received
An upfront fee deducted from proceeds leaves less cash than the contract amount. A hypothetical 1% deduction on ALL 500,000 leaves ALL 495,000 available while the initial loan balance remains ALL 500,000. Request net proceeds, APR and the repayment schedule, including account charges and any insurance required for the quoted terms.
Illustration, not a bank offer. These figures are assumptions used to explain the calculation.
What the bank assesses
Prepare income evidence and existing commitments. Ask whether the offer covers your employment type, required employment history and any salary-transfer condition. The Bank of Albania Credit Registry records borrowing and repayment information, including arrears, to support lenders’ assessment; it is not an approval promise or probability score.
Compare a complete quotation
Choose matching amount, currency and term. Read salary conditions, documents, fees and APR example in product details. Confirm missing fields with the bank before deciding. Keep the dated quote, ask how long it is valid, and check early repayment and payment-difficulty procedures.
Secured or unsecured?
Do not rely only on a “personal” or “consumer” loan label. Ask whether an asset, guarantor or co-borrower is required; these involve different responsibilities.
For property-backed borrowing, also compare valuation, notary, registration and required insurance costs. A lower nominal rate alone does not establish a lower total cost. The collateral guide explains the checks to make before signing.
Questions to take to the bank
Use this list when requesting your written offer.
- How much do I receive and repay in total?
- Does the rate stay fixed until the end?
- Are salary transfers or insurance required?
- What does early repayment cost?
Frequently asked questions
Is the lowest payment the cheapest offer?
Not always. A longer term reduces payments but can increase total interest. Compare term, APR and all payments.
Can I borrow without moving my salary?
It depends on the product. Different conditions may apply; request the option for your own circumstances.
Sources and examples
Bank of Albania: consumer-credit information ↗
Links beside specific explanations identify their official sources. Worked examples are educational assumptions, not bank offers. The bank confirms the terms for your situation.