Faculty of Economics and Business Administration Timisoara

CEC Bank and Study credit

INVEST IN YOU

Students:
Crisan Sergiu-Laurentiu
Corsiuc Ioan Adrian
FB, II, 2nd Group
Content
A. Company description
B. Product description
C. Bibliography
Company description
CEC Bank is a universal commercial bank offering diverse and high-quality bank products and
services to its clientele, focusing mainly on financing agricultural SMEs, public administration, as
well as those banking projects that, by their nature, contribute to the economic development of
Romania.
The origins of CEC, or the Savings Bank, date back to the latter half of the 19th century. At that
time, the economic and political elite joined forces with ruler Alexandru Ioan Cuza in an effort to
put the country’s finances in order, given that the Romanian Principalities became one state and
were recognised as such by the Great Powers no sooner than in 1859.
CEC carried on the activities performed by the Deposits and Consignments House, the first public
credit institution ever to be founded in Romania, and, starting from 1881, by the Savings House,
the high profile savings house, whose name was changed to the Savings and Postal Cheques
National House in 1932.
In 2017 total assets of CEC BANK S.A. were 31 616.34 mln RON and a net income of 171.54
mln RON. In 2017 CEC BANK S.A. was ranked the 5th largest bank in Romania in terms of total
assets, having 8.97% of the domestic market share.
Fiscal Code 361897
Registry No. J40/155/1997
Date of establishment: 1992
Localization of CEC BANK SA - contact information:
County BUCURESTI
City/District SECTORUL 3
Address CALEA VICTORIEI 13 C
Phone 021-311.11
Fax 021-312.54
NACE Code: 6419
Employees: 5,932 (In 2016)
Product description
The Bank has developed the “INVEST IN YOU” Student Loan by which funding shall be granted
to all customers and their families’ members that want to benefit of personal development
opportunities, based on the legal provisions, amounting to:
- maximum Lei 40 000 for young people aged between 16 and up to 26 years old / maximum, who
follow their studies in schools, faculties or follows certified specialist courses;
- maximum Lei 35 000 for people aged between 26 and 55 years old, who follow studying courses
in education institutions or certified specialist courses and/or occupational retraining courses.
The loans granted may be supplemented by up to Lei 20 000 if the beneficiary takes an
employment or is employee throughout the lending term.
Loans shall be used in one or several tranches and shall be 80% guaranteed by the State through
the National Loan Guarantee Fund for SMEs and the Romanian Counter-guarantee Fund.
Additionally, according to the law, a mortgage shall be lodged over the tracking amounts
representing incomes and liquidities in Lei and foreign currency, held by the loan beneficiary or
the co-debtors and/or due whatsoever by third parties to the loan beneficiary or the co-debtors in
the present or in the future based on different existing legal relationships, as well as a pledge over
the accounts opened with the Bank by the customer and the co-debtor.
The loans shall be granted for a maximum funding term of 10 years with a grace period of
maximum 5 years, for the following intended uses:
- Payment of costs for books, office supplies, courses, specialist magazines
- Payment of costs for nurseries, kindergartens, private schools;
- Payment of costs with specialist/qualification courses;
- Payment of costs with occupational training courses;
- Payment education charges, including master, PhD and MBA charges;
- Payment of rent and utility costs;
- Payment of accommodation in student households;
- Payment of a share of costs for building or purchasing a home;
- Payment of costs for house modernization or renovation;
- Payment of costs for medicines, tests, dental services and surgeries;
- Payment of transport costs for traveling to scientific events or contests;
- Payment of costs with cultural subscriptions or tickets: cinema, theater, opera, libraries,
museums;
- Payment of costs for publishing specialist books or studies;
- Payment of costs of sport items;
- Payment of costs for participation in scientific events and contests;
- Payment of costs for purchasing laptops, computers, printers, specialist programs.
CEC Bank will provide its customers with information on the "INVEST IN YOU" loan through
its more than 1 000 territorial units.
Bibliography
https://www.cec.ro/en/press/press-releases/cec-bank-partner-“2018-investing-you”-programme-
funded-romanian-government-zero
https://thebanks.eu/banks/17493
https://en.wikipedia.org/wiki/CEC_Bank
Simulation
Interest rate: 7.23%
Monthly management fees: 20.00 LEI