More about overdraft
You can repay a loan by the:
- Linear method – the loan is repaid in equal parts and interest is calculated on the remaining loan balance, thus repayments to the bank gradually decrease each month
- Annuity method – equal amounts are repaid each month consisting of loan repayments and monthly interest
In the case of loan agreements, the standard terms and conditions of which include the obligation of a borrower or co-borrower to conduct their transactions via a current account in Danske Bank, the Bank does not consider the failure to perform this obligation a breach of the agreement. This means that the current account tied with the agreement must have sufficient available funds on the repayment date to fulfil the obligations set out in the loan agreement, while the borrower can perform other transactions in any other credit institution.
Management of existing agreements
Possible additional expenses
- Current account maintenance fee according to the effective price list.
- Repayment conversion expenses.
If property is offered as collateral:
- Notary’s fee and state fee for the preparation of notarised contracts.
- Expenses related to the valuation of the collateral. The necessary valuation report must be ordered from a property valuator accepted by Danske Bank.
- Collateral insurance premiums. Insuring the collateral when a loan is taken is mandatory according to Danske Bank’s insurance requirements and insurance cover must be in force for the duration of the entire loan period.
Examples of annual percentage rates of charge
There are various expenses related to borrowing and loans themselves, such as such as interest, credit fee, monthly maintenance fee to the card tied to the loan, etc. The annual percentage rate (APR) of charge can be calculated for every loan on the basis of these expenses. Basically, the APR is the amount of the expenses arising from the loan in a year.
The sample APR of the loans offered by Danske Bank are given below.
The initial APR is 1.83% per year on the following sample conditions:
credit amount €50,000, interest 1.75% per year (6 month EURIBOR + 1.75%; calculated on 6 month EURIBOR as at 10.03.2016, which was -0.139% and is deemed to be 0 (zero), unfixed interest), contract fee €250, term 25 years, total amount €62,201.35, monthly repayment €206,52. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full and the principal is repaid and interest is paid in monthly annuity payments. Collateral must be inured for the entire period of the loan.
The APR is 26.94% per year on the following sample conditions:
credit limit €700, interest rate 18%, contract fee €20, current account management fee €1.50 per month, repayment term 1 year, total amount €865.75. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full.
The initial APR is 5.45% per year on the following sample conditions:
credit amount €1,920.00, interest rate 5%, contract fee €2.56, total amount €1,975.89. The rate was calculated on the assumption that the loan amount will be immediately drawn down in full and repaid within a year in 12 equal instalments after equal intervals of time.
The initial APR is 2.72% per year on the following sample conditions:
capital lease, price of property €19,000 incl. VAT, down payment 20%, residual value of property at end of period 0%, contract period 5 years, interest rate 2.0% (6 months EURIBOR + 2.00% per year; the calculation is based on 6 months EURIBOR as at 01.02.2017, which was 0.244% and is deemed to be 0 (zero); unfixed interest rate), contract fee €175; current account management fee €1.50 per month, total amount €16,260.49, monthly repayment €266.42. The property must be inured for the entire period of the loan.
Please note that every loan is a financial obligation and any failure to perform the obligations arising from the loan agreement may have serious consequences (e.g. compulsory sale of property).
Consider your possibilities and needs carefully before you sign the loan agreement. Read the terms and conditions of the loan and request information from your relationship manager if necessary.
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