How is the interest rate calculated?
- The interest rate for a loan is made up of the base rate and an additional margin that is set individually for each customer.
- The individual margin depends on the size of your income and liabilities, the value of the property that provides the collateral for your loan, and the loan-to-value ratio.
- The base rate of an idea loan is Nordea EUR Prime.
Annual percentage rate of the Idea Loan
When taking an idea loan in the sum of 10 000 euros, a floating loan interest of 7.35% a year, loan period 240 months and agreement fee 150 euros, the preliminary percentage rate of charge is 7.55%. The loan security must be insured for the duration of the loan period, but the total amount of insurance costs depends on the insurance provider and terms and conditions of insurance the loan recipient chooses, and therefore is unknown to the loan provider. The loan recipient will pay the state fee and notary`s fee for establishing the security, and therefore, the loan provider is unaware of the final amount.
You can find additional information on annual percentage rates on the website of the Consumer Protection Board.