A typical example of the calculation of the annual percentage rate of charge
If you take a consumer loan in the amount of EUR 6 000, with the duration of the agreement (and the maturity) being 10 years, the annual fixed interest rate being 4.9%, paying the fixed minimum bank’s fee for everyday services (EUR 0.70/month), an agreement administration fee of EUR 95, and paying monthly payments of EUR 64 by annuity, the annual percentage rate of charge (APRC) would be 5.7%, and the total amount paid by the borrower would be EUR 7 787.
The interest rate has been set with a discount that might be cancelled and the annual fixed interest rate of 15% may be set if the loan is not used according to its purpose, which may result in a bigger APRC.
The annual percentage rate of charge, the total amount to be paid by the borrower and the payment amount are calculated considering that the loan agreement stays valid for the term equal to the duration of the agreement, the loan is disbursed on the agreement signature date, the parties duly fulfil all their obligations, the interest rate, the fees and other expenses remain the same as agreed when concluding the loan agreement and apply until expiry of the loan agreement.
