Many of us when looking for a good loan pay special attention to its interest rate. We follow the principle that the lower it is, the cheaper the loan is. However, it is worth remembering that in such a way we will not find a loan that costs the least. Other fees are much more important, which may make a loan with a low interest rate more expensive than the one with a higher interest rate.
A good loan for a company should be cheap
The less you pay for borrowing money from the institution, the better. Not all of us, however, know how to check whether the loan will actually be as cheap as in the advertisement. Most often, lenders tempt with low interest rates, but also lack of commissions and other bonuses. However, we must remember that we will not get loans for free and it is worth knowing what to look for when looking for the cheapest one.
Nominal interest rate and APRC
The main cost of the loan is usually the interest rate. It is dependent on the given financial product, the amount of the loan and the repayment period. Nominal interest rates, i.e. the ones that the lender most often boast of, is not the only cost of the loan . There are also others that we will write below. However, let us mention the APRC, i.e. the actual annual interest rate, which is different from the nominal interest rate. It’s worth knowing the differences between these two indicators.
Nominal interest rate shows us the interest rate of the loan on an annual basis. In turn, the APR is a wider indicator, which takes into account not only the nominal interest rate itself, but also other loan charges, for example a commission, preparation fees, for the consideration of the contract. Hence, the APRC is therefore higher than the nominal interest rate.
APY is helpful in comparing various loans, for example banking or non-bank loans. All you need to do is set the same parameters – amounts, periods, types of installments to see where you pay more. The loan will be more expensive where APY is higher. We can also find out about the estimated amount of fees based on the ratio of nominal interest to APRC. When the difference is very large, then the financial institution offering us the loan applied a lot of non-interest charges.
Installment loan – no hidden costs
At Aasa Dla Biznesu we do not use any additional, hidden costs in our loans – the customer can immediately see how much he will have to give when borrowing a specific sum for a given period. For this purpose, you can use our loan calculator located on the home page.
We offer attractive loans for companies. The interest rate is at a convenient level with us, and the customer is always honestly informed about the other fees. You can see them after using the calculator – all you need to do is choose the amount and the period to be repaid to see how much we will have to pay in full, specifying all fees – interest rate, APRC, preparation fee. We invite you to take advantage of the offer!