Consumer loan
- Credit amount from 500 Eur to 40 000 Eur
- Interest rate from 7,9 %
- Repayment term from 12 months to 7 years
- Agreement fee – 1,5 % of credit amount (min. 50 EUR)
Home equity loan
- Loan amount depends on client's financial situation and collateral
- Interest rate considered individually
- Repayment term – up to 15 years
- Agreement fee – 0,4 % of loan amount (min. 200 Eur)
Home loan and home equity loan typical example for calculating annual percentage rate
If a loan of EUR 100,000 secured by real estate collateral is granted for the period of 25 years and 300 loan instalments based on the annuity method will be made, the total amount to be paid by such borrower will make EUR 166,874.41, monthly instalment – EUR 547.91. The annual percentage rate will make 4.62 per cent. Annual percentage rate showing the total cost of a loan is calculated by including the below instalments made within the entire loan period:
- 4.3 per cent yearly variable interest
- EUR 400 agreement fee
- EUR 8.6 mortgage (pledge) registration fee
- EUR 1 per month minimum fee for main banking services
- EUR 70 dwelling insurance annual premium
Note. Property valuation costs and the commission for the services provided by a credit intermediary are not included.
Annual percentage rate and the total amount to be paid by the borrower are calculated considering that the loan is disbursed on the agreement signature date and that the terms of the agreement, interest rate and fees do not change within the entire loan period, and the terms and conditions of the agreement are timely implemented. If you fail to fulfil or unduly fulfil the terms of the loan agreement, the risk exists that you may be deprived of the ownership right to the pledged real estate. The mortgaged real estate must be insured in favour of the bank during the entire loan period.
Typical example for calculating annual percentage rate of charge (APRC)
If you are a granted a consumer loan of EUR 5 000 for a period of 5 years, the total amount to be paid to the bank would amount to EUR 6 529,79. Your monthly payment would be EUR 106,61. The total cost of borrowing, calculated on an annual basis (APRC) would be 11,80 %. The APRC shows the total cost of the loan and includes the following expenses:
- 10% fixed interest rate per year;
- EUR 75 contract fee;
- minimal fee for the main bank services EUR 1 per month.
We have calculated APRC and the total amount based on the following assumptions: the loan is paid out on the date the agreement is signed; the interest rate and fees stay the same during the whole loan period; you meet all the terms of the loan agreement on time.
The APRC is shown to help you easily compare different loan offers.
