Money & WorkFact

The one number that makes every loan comparable.

The nominal rate states only the pure interest. The annual percentage rate (APR) includes fees, payment schedule and term, and must be disclosed for every consumer loan in the EU. A loan at 0% interest with a 3% processing fee over twelve months has an APR of about 5.6%, because on average you use the money for half a year.

Useful: Compare loans only by APR, never by the monthly instalment.

Source: de.wikipedia.org

KreditVerbraucherschutzZinsen

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