The annual percentage rate of charge is the percentage of all costs associated with the loan. The calculation includes e.g. loan amount, loan fee, interest rate and other costs, such as premiums for real estate insurance, cadastral costs, real estate appraisal costs, etc.
In addition to the interest rate, the loan fee, the expert's fee for the expert opinion, the fee for the proposal to deposit the lien, the insurance premium for real estate insurance and other fees associated with the loan are also included here.
The interest rate is one of the values ??included in the calculation of the RPMN and represents a percentage of the price of the money loan.
For example: The interest rate determines the amount of interest that is included in the monthly payment and represents an expense for the client. Interest, together with other costs, is converted into a percentage of the RPMN in order to compare the total cost of the loans with different cost structures. For example, if you compare a loan with an interest rate of 1.35 % per annum and an RPMN of 2.10 % and a loan with an interest rate of 1.55 % per annum and an RPMN of 1.85 %, you will actually pay less on a loan that has an RPMN of 1.85 %. although at first sight it has a higher interest rate. In the first loan you pay less on interest, but other costs, e.g. for insurance, loan fees, etc., are so high that a second loan with an RPMN of 1.85 % is more advantageous, although it has a higher interest rate.