An example for calculation of an annual rate of a total credit price
If you take a credit of EUR 55 000 pledging real estate for a period of 20 years with a variable annual interest rate of 3.0%, then you will pay a one-time agreement administration fee of EUR 220, the total annual rate of credit price would comprise 3.08%, the total amount of credit paid by you would amount to EUR 71 788.76 The total number of credit payments would amount to 240 and the average amount per payment would be EUR 298.20. The credit shall be repaid in a linear method, therefore, the amount of payment will decrease every month.
The total annual rate of a credit price is calculated on the basis that: (I) the credit agreement is valid throughout the agreed period and its terms are not subject to change; (II) the total credit is paid out at once; (Iii) the parties meet their obligations under the terms and conditions set out in the credit agreement; (IV) for the entire period of validity of the credit agreement, the interest rate specified in this example, which, including other payables, remains the same as at the time of the conclusion of the credit agreement and applies until the expiry of the credit agreement; (V) no grace period applies to the credit repayment ; (VI) the credit is not repaid in advance. Costs the bank is not aware of are not included in the calculation of the annual rate of a total credit price.