Banks provide loans and credits to potential customers so that they can earn them at the same time. Therefore, they charge fees for commission, early repayment of the loan and set a specified interest rate.
However, we do not really know whether the interest rate that is imposed on the financial liability will be beneficial or not. In addition, bank ads are cleverly manipulating consumers by providing them with only the nominal interest rates that account for the total cost of the loan.
How is it with the interest on the consolidation loan and which of the banks offers the lowest value?
The most important determinant of the loan interest rate is annual percentage yield (APY).
The most important indicator, which will allow to calculate the total cost of the loan, taking into account changes in prices on the market, is the Annual Actual Interest Rate, ie the popular APR (English Annual percentage rate).
This parameter is the percentage of the entire loan, which will be expressed annually. From September 2012, the APRC should be calculated in accordance with the European directive, in this way the unification of the interest rate determination for all banks took place.
When preparing the APR of a given loan, both the commission, preparation fees and any other costs are included. The longer the loan period, the lower the APRUS ratio.
Nominal interest rates, so often treated as a priority when advertising loans, is only the value of only the interest rate on the loan, without taking into account other costs, including commissions and additional fees associated with granting the loan.
Therefore, it is an index lower than the APRC, therefore more attractive to consumers.
|Bank||Loan amount [PLN]||Repayment period [months]||APR [%]|
|BGŻ BNP Paribas||37 600||80||9.43|
|Plus Bank||55 700||88||12.60|
|Bank Pocztowy||5 578.71||60||15.66|
|Alior Bank||76 600||110||10.26|
The attached table shows the actual interest rate calculated on a given example. Let us pay attention primarily to the repayment period.
If it is longer, the RRSO indicator drops automatically. On the basis of representative examples, it can be observed that BGŻ BNP Paribas offers the cheapest consolidation loan.
In addition, Credit Agricole and Deutsche Bank also have an interesting offer.