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Foxycredit Experts Discuss the Implementation of the Responsible Lending Principles in Finland and How They Differ from Romania

Responsible Lending Principles

To safeguard the welfare of consumers in the financial industry, it is essential to maintain ethical lending standards. To shed light on responsible lending practices, FoxyCredit, an eminent financial analysis firm, thoroughly investigated such methods in Finland and compared them with those in Romania.

Assessment of Borrower’s Affordability

Regarding evaluating borrowers’ financial capacity, research highlights that lenders in Finland conduct extensive assessments before granting loans.

The study indicates that in 2022, the average monthly income in Finland was approximately 3,804 EUR. And borrowers typically made an average monthly loan payment of around 408 EUR. These numbers indicate that the loan payments in Finland are reasonable since they do not exceed 30 percent of the borrower’s net monthly income.

Likewise, Romania lenders must assess a borrower’s creditworthiness before granting loans. However, the study reveals that Romania’s average monthly net income was significantly lower at around 690 EUR in 2021. And borrowers made an average monthly loan payment of about 162 EUR. 

As a result, the loan payments in Romania seem to stay below 30% of the borrower’s monthly net salary. It demonstrates a similar approach to assessing affordability as seen in Finland.

Interest Rate Limits

Romania has established an interest rate limit on consumer loans to prevent exploitative lending practices. FoxyCredit’s findings reveal that in 2021, the highest annual percentage rate (APR) for consumer loans was restricted to 37% in Romania. 

This measure aims to protect borrowers from exorbitant interest rates and promote responsible lending practices. And with the same purpose, in 2019, the Finnish Parliament capped the APR on all unsecured loans at 20 percent.

Borrowers’ Credit Limits

In Romania, according to the National Bank of Romania regulations, the total monthly debt obligations of a borrower, including the loan installment, should not exceed 40% of their net monthly income. 

However, the specific credit limit in the percentage of disposable income may vary based on individual circumstances and the lender’s policies. It is advisable to consult with a financial advisor or a lender to understand the credit options available and the terms and conditions associated with borrowing in Romania.

Finland requires lenders to assess a borrower’s ability to repay the loan before extending credit. It means that the borrower’s disposable income. It’s the amount left over after deducting taxes and other necessary expenses. And lenders must consider this amount when determining their credit limit.

No fixed percentage of a borrower’s disposable income determines their credit limit. It varies depending on the lender’s policies, the borrower’s financial situation, and the type of loan being applied for. However, as a general rule of thumb, borrowers should limit their debt-to-income ratio to no more than 40%. Their total debt should not exceed 40% of their disposable income.


To protect consumers in the financial industry, it is essential to implement responsible lending principles. Finland and Romania have established comparable responsible lending principles. These include affordability assessments, transparent loan disclosures, and responsible marketing practices, with some variations in their specific guidelines and requirements.

FoxyCredit is a financial and analytical service where you can compare loan terms, amounts, interest rates, get acquainted with the mandatory documents and requirements of financial institutions in your country. The company provides services in Sweden, Denmark, Norway, Finland, Estonia, Lithuania, Bulgaria, Romania, Poland, and Ukraine.

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