We would like to note that before deciding to take a loan you should carefully assess your personal and (or) your family’s financial perspectives and possibilities.
A typical example If you take a consumer loan of EUR 8 000, the duration of the agreement (and the loan repayment term) is 5 years, applying an annual fixed interest rate of 9.9%, paying the minimum daily service fee set by the Bank (EUR 1 per month), 80 EUR contract administration fee, monthly instalments of 171.23 Eur when paying by the annuity method, the total annual rate of the consumer credit price would be 11.27%, and the total amount paid by the consumer credit recipient would be 10 414.54 Eur.
Example of total consumer credit annual percentage rate calculation for leasing (for natural persons who have acquired leased assets for personal, family or household purposes, but not for business or professional purposes): Assumptions: Price of the car selected – 20 000 EUR, contract term – 60 months, advance paid by the Client – 10 percent, financed amount – 18 000 EUR, interest rate – 6 months Euribor (at least 0%) + 2.29% (calculated annual interest rate – 2.29%) ., contract fee – 200 EUR (monthly instalment – 318.49 EUR). In order to receive consumer credit, the Client must have (open) an account with Swedbank, AB, with a set minimum daily services fee of 0.70 EUR per month. The client must also, at his/her own expense, buy insurance for the car at an insurance company acceptable by Swedbank under conditions set out in the agreement (insurance cost is not included in the total consumer credit annual percentage rate). Total consumer credit annual percentage rate is then equal to 2.86 percent, and the total Consumer Loan cost payable a receiver would amount to EUR 19 317.28. Calculations of the total consumer credit annual percentage rate and the total amount payable by the borrower are based on the assumptions that the agreement will be valid for the entire duration of the agreement, the total credit amount will be paid out on the day of signing the agreement, the parties to the agreement will fulfil their obligations arising from the agreement by respecting the terms and conditions set out therein, the annual interest rate, the amount of fees and other charges paid by the Client will remain the same as at the time of concluding the agreement and will continue to be applied until its expiry.
Typical example If you take a home small loan in the amount of EUR 12 000, with the duration of the loan agreement (and maturity) being 7 years (83 payments in total), the annual fixed interest rate being 8.9%, paying the fixed minimum bank’s fee for everyday services (EUR 1/month), an agreement administration fee of EUR 0, and making monthly payments of EUR 196,16 by annuity, the annual percentage rate of charge (APRC) would be 9.6 %, and the total amount paid by the borrower would be EUR 16 365. Calculations of the total loan annual percentage rate and the total amount payable by the borrower are based on the assumptions that the Loan Agreement will be valid for the entire duration of the Loan Agreement, the total Loan amount will be paid by the Bank to the borrowers on the day of signing the Loan Agreement, the parties to the Loan Agreement will fulfil their obligations arising from the Loan Agreement by respecting the terms and conditions set out therein, the rates and other expenses will remain the same as on the day of concluding the Loan Agreement and will continue to be applied until its expiry.
Typical example If you applied for a home small loan amounting to EUR 12 000 with loan agreement duration (and loan repayment term) of 7 years (the number of instalments – 83) with the fixed annual interest rate of 8.9% and the following applicable fees: a minimum daily services fee (EUR 1 per month) as established by the Bank; agreement administration fee of EUR 120; monthly payments of EUR 194.36 using annuity method, then, the loan annual percentage rate would be 9.94% and the total amount paid by the loan receiver would be EUR 16 530.35. Calculations of the total loan annual percentage rate and the total amount payable by the borrower are based on the assumptions that the Loan Agreement will be valid for the entire duration of the Loan Agreement, the total Loan amount will be paid by the Bank to the borrowers on the day of signing the Loan Agreement, the parties to the Loan Agreement will fulfil their obligations arising from the Loan Agreement by respecting the terms and conditions set out therein, the rates and other expenses will remain the same as on the day of concluding the Loan Agreement and will continue to be applied until its expiry.
Example of calculation of the annual percentage rate of charge for mortgage.
If the total amount of a real estate mortgage loan is EUR 110 000, with a loan agreement term of 26 years, at a variable annual interest rate of 4%, with a one-off agreement administration fee of 0.4% of the loan amount (EUR 440), a minimum daily service fee (EUR 1 per month), a mortgage registration fee (EUR 8.60), and with the mortgage repayments made by annuity, the annual rate of the total cost of the loan 4.190%, and the total amount payable by the borrower would be EUR 179 100.51 The total number of repayments is 312 and the repayment amount is EUR 572.32.
The annual percentage rate of charge, the total amount payable by the borrower, the total number of instalments and the amount of the repayment are calculated on the assumptions that the loan agreement will have a term equal to the duration of the loan agreement, that the full amount of the loan will be drawn down on the date of signature of the agreement, that the parties will fulfil their obligations in full and in good faith and that the variable rate of interest, the level of fees and other costs will remain the same as at the time of conclusion of the loan agreement and will continue to apply until the end of the loan agreement. In addition, the customer will incur property insurance and valuation costs, which depend on the individual characteristics of the mortgaged property and are therefore not included in the total cost of the loan in the above example.
Example of calculation of the annual percentage rate of charge for mortgage.
If the total amount of a real estate mortgage loan is EUR 100 000, with a loan agreement term of 26 years, at a variable annual interest rate of 5.93%, with a one-off agreement administration fee of 0.4% of the loan amount (EUR 400), a minimum daily service fee (EUR 1 per month), a mortgage registration fee (EUR 8.60), and with the mortgage repayments made by annuity, the annual rate of the total cost of the loan 6.25%, and the total amount payable by the borrower would be EUR 198 689.03 The total number of repayments is 312 and the repayment amount is EUR 634.53.
The annual percentage rate of charge, the total amount payable by the borrower, the total number of instalments and the amount of the repayment are calculated on the assumptions that the loan agreement will have a term equal to the duration of the loan agreement, that the full amount of the loan will be drawn down on the date of signature of the agreement, that the parties will fulfil their obligations in full and in good faith and that the variable rate of interest, the level of fees and other costs will remain the same as at the time of conclusion of the loan agreement and will continue to apply until the end of the loan agreement. In addition, the customer will incur property insurance and valuation costs, which depend on the individual characteristics of the mortgaged property and are therefore not included in the total cost of the loan in the above example.
Example of the calculation of the annual percentage rate of charge for home energy efficiency loan. If the total amount of a home loan being taken out related to real estate is EUR 78,000, when the duration of the credit agreement is 26 years with a 2.06 per cent variable annual interest rate, paying a one-off loan agreement administration fee established by the bank of 0.4 per cent of the credit amount (EUR 312), the minimum daily service fee (EUR 0.70 per month), the mortgage registration fee (EUR 8.60) and annuity mortgage payments, then the annual percentage rate of charge would be 2.16 per cent, and the total amount paid to the borrower would be EUR 101,672. The total number of loan payments would be 312, and the amount of each instalment would be EUR 324. The annual percentage rate of charge, the total amount payable by the borrower, the total number of loan payments and the amount of each instalment are calculated under the assumption that the credit agreement will be valid for a period equal to the duration of the credit agreement, that the entire loan will be paid out on the day that the agreement is signed, that the parties will fulfil all of their obligations properly, and that the variable interest rate, fees and other costs will remain the same as at the time of conclusion of the credit agreement and will continue to apply until the end of the credit agreement. A customer shall also bear the costs of property insurance and appraisal. These costs depend on the individual characteristics of collateral and, therefore, are not included in the total credit price in the example above. The loan must be secured by mortgage of real estate acceptable to the bank.
Typical example of an APR calculation
For Classic and Gold credit cards:
For a credit of EUR 1,500, at a fixed interest rate of 18% p.a., a minimum daily service fee set by the Bank (EUR 1 per month), a monthly card administration fee (EUR 2/month for the Classic card, EUR 5/month for the Gold card), and a one-off card issuance fee set by the Bank, the total annual percentage rate (APR) of the cost of the consumer credit would be:
- 21,99% for the Classic Credit Card and the total amount payable by the borrower would be EUR 1677.50.
- 26.82% for the Gold Credit Card and the total amount payable by the borrower would be EUR 1713.50.
For the Platinum credit card:
For a credit of EUR 3,000, at a fixed interest rate of 13% p.a., with a minimum daily service fee set by the Bank (EUR 1/month), a monthly card administration fee (at EUR 16/month), a one-off card issuance fee set by the Bank, the total annual percentage rate (APR) of the cost of the consumer credit would be 26.55%, and the total amount payable by the borrower would be EUR 3,387.93.
The APR and the total amount payable by the consumer borrower are calculated on the assumption that the Credit Agreement will be valid for 12 months, the full amount of the Credit shall be disbursed on the date of signature of the Credit Agreement and shall be repayable in equal monthly instalments over a period of one year, with the first instalment due one month after the Credit Limit has been drawn down, and the last instalment to cover the balance of the Total Amount Payable by the consumer borrower, The Credit Agreement will be executed in accordance with the terms and conditions set out therein, the Credit Limit will be used for purchases/services by card payment (the most common method of use of the Credit Limit), the annual interest rate, the amount of the Fees and other costs will remain the same as at the time of conclusion of the Credit Agreement and will continue to apply until the end of the Credit Agreement.
The Insurance service is provided by Swedbank P&C Insurance AS, acting through the Lithuanian branch, and the
insurance agent is „Swedbank”, AB.
