What a loan costs you depends largely on the interest rate you receive. In general, it can be said that interest rates are high for smaller unsecured loans and low for larger loans with collateral. But even your financial status is recorded, because interest rates are set individually according to creditworthiness and repayment ability. Here we go through general bank rates and other information for different types of loans. If you are interested in reading about savings rates instead, you can read more here.
When it’s time for your life’s most important business, you want to buy as good a deal as possible. A major advantage of home loans is that you can immediately get an indication of how much you can borrow and at what interest rate on the banks’ websites.
When it comes to the interest rate on your mortgage, each individual bank makes a risk assessment. Your interest is set individually according to what collateral you have for your loan, the total amount of the loan in relation to the value of the home and the financial market situation. The interest rates at the banks are currently around 1-4% on mortgages. For mortgages you can usually choose between having fixed or variable interest rates.
In addition, since March 2018, stricter mortgage loan requirements have been applied, which can affect how much you can borrow and how much you have to repay each month. Here you can read more in our complete guide on the amortization requirement .
A loan taken to the cash deposit is called a top loan and has no collateral, in fact it is like any other private loan. The repayment period on top loans is about 10 years and the interest rate is around 2–6 %.
Private loans are a loan you can take without collateral. Other names for this type of loan are blank loans or consumer loans and the big advantage of this type of loan is that you can use it for exactly what you want – goods, services, travel, etc. Private loans are in the range of 5,000 to 600,000 crowns. A private loan has a repayment period of 1–15 years and the interest rate is generally between 4–30%.
When you compare private loans with us at Norman Leu , you increase your chances of finding the best possible interest rate for you because different lenders target different types of borrowers. You apply directly through our website and it is completely free of charge, without any commitment.
If you are a union member, you can take out a member loan that gives you a favorable interest rate of 4.7–5%. The loan has a repayment period of 1–12 years and payment protection is included, which means that part of the loan cost is covered if you become unemployed or ill. Membership loans also include a life insurance that redeems the loan in the event of death. The loan amount is USD 30,000-300,000 and you do not pay any setup fee or newspaper fee.
You take a car loan to be able to buy that dream car you have been looking for! The usual conditions mean that you can borrow up to 80% of the purchase price with the vehicle as collateral when you buy from an authorized dealer. The security means that the bank can offer you better interest rate terms. If you take out a car loan without collateral, the repayment period is 1–7 years and the nominal interest rate is 4–7%. But the high administrative fees mean that the effective interest rate will be considerably higher than that. In addition, there are additional costs, as many lenders require you to fully insure your vehicle for the entire term of the loan.
Credit cards are a convenient and convenient payment option, but also one you need to look out for.
You can usually shop all over the world and do not have to think about having brought enough cash on the trip. You pay in arrears on invoices, which means that you can easily check your purchases and amounts so that everything is correct.
With credit cards you can borrow without collateral and there is no fixed repayment period. The interest rate is 10% +, thus relatively high. In addition, if you forget to pay your invoice, a hefty penalty rate is waiting!
Payments on installments are becoming increasingly popular as many offer interest-free months at the beginning of the installment period. However, these purchases can become expensive in the long run, as interest rates are gradually increased and administrative fees are added. The repayment period on the installment is a maximum of 3 years at an interest rate of 10% +.
Summary bank interest rates
Different types of loans mean different high bank rates. Here we summarize interest rate spreads for different types of loans: NOTE that these interest rates are only estimates based on our own experience as a loan intermediary and thus do not generally apply to all types of loans.