So what can the maximum interest rate on the loan be and how is it calculated? Read today’s article and learn more about it.bEach financial commitment is associated with appropriate charges that the borrower must pay. Fortunately, the current legal provisions set out in detail the rules for calculating the total cost of loans and credits. However, control institutions operating on the financial market ensure compliance with the law in this respect.
One of the first things ‘re taking into account the customer is how much will have to Ignition Latin C. given him financial support. Lending companies ensure in their advertisements that they offer benefits for every budget, on flexible terms and with a convenient repayment period. Let’s find out if this is the case.
Knowledge is the basis
Not all clients of financial institutions are familiar with the complicated legal regulations regarding obligations. Few are able to say what makes up the cost of the loan, for example, and certainly explain the essence of each fee. Lack of knowledge in this area is a significant obstacle in reaching for money responsibly. We write more on this subject in article 3 iron rules for informed lending .
Know Ex ad on that bed over d ch years loan companies can not independently adjust the maximum amount of interest obligations. Earlier this type of uncontrolled activity led to numerous abuses.
In 2011 the legislature withdrew the provision for g ó ó rnych limit in non-interest expense in bed with loans and credits. Until now, it accounted for 5% of the total capital transferred to the client. So they began to increase lender fees, causing many of our countryman was not in bed with constant C at the jam achievement decapitation commitment. Those lines, called it decided they had nothing to regret later, because the costs amounted to astronomical figures.
Most of the client in bed, unfortunately, fell into even greater debt, which sooner or later drove to the recovery of their property. Because the game was entering the court, then the bailiff, rice conducted vindication benefits. We wrote more about his rights in the article Bailiff Classes and the lowest national.
Two years ago, there was a breakthrough in terms of the maximum interest rate on the loan. The ruling party began to perceive the activity of loan companies through the prism of usury. It was decided to create the so-called antylichwiarską law, ra regulated, among others, the amount of the cost of the bed, ‘re that may incur the customer when taking a loan or a loan. Changes concerned ug łównie popular moments ó wek, agri cultural interest rate is sometimes even several thousand percent per annum. After the adoption of the new provision on the non-banking institutions can no longer charge fees without restrictions.
What does the cost consist of?
Many terms related to the cost of the benefit can be found in loan and credit agreements. These include commission, margin, preparation fee and interest. The latter are in a sense a kind of remuneration for the lender for the risk incurred and willingness to grant a loan. The first three fees constitute the so-called non-interest expenses.
Let’s focus now on the cost of a bank loan, which was once the most popular financial product in our country. To this day, moreover, this solution is supported by security, fully professional service, and lower fees than is the case with non-bank loans. What is the maximum interest rate on the loan? Currently, the maximum interest in the contract for a loan is 10% of its value per annum. Their amount is limited to 4-fold Lombard rate, with Ra angle is now 2.5%. Considering the wide market of bank offers, customers are able to find products with interest rates ranging between 3 and 10%. Very frequently hampered the desired financial institutions offer borrowers a fixed promotional solutions with a much lower interest.