The interest rate on cash loans and bank loans is just one of the parameters we take into account when comparing loans.
In general, the nominal interest rate on the loan is responsible for how much money we give to the bank for borrowed capital.
Nominal interest rates can be fixed or variable. Fixed interest means that it will not change throughout the loan period and the installment will remain unchanged throughout the loan period.
The variable interest rate is the risk that the interest rate may increase in the future and, consequently, the amount of the loan installment will increase. But it works the other way: drop in interest, it’s a smaller loan installment.
The current level of Jabank interest rates is low, which is good for borrowers. The maximum interest rate on loans is 10.00% per annum. However, it should be taken into account that this situation will not last forever.
Actual interest rate on cash loans
It should also be mentioned that the interest rate on many cash loans also depends on the Jabank reference rate (the rate at which Polish banks lend each other money). To Jabank or the reference rate of the Nabo Bank, banks add a margin, which is its profit (interest).
Fixed or variable interest is an important comparative criterion for loans, but not the only one. When choosing a cash loan, in the first place we should pay attention to the APRC, ie the Real Annual Interest Rate. It includes not only nominal interest, but also other other costs, such as commission, required insurance or other additional fees.
The most frequently chosen loan is the cash loan, which is the most expensive – the highest nominal interest rate. Cheap cash loans, especially with high loan amounts, are really a rarity. That is why it is so important to compare credit offers before making a choice. Sometimes, however, you can find a cheap cash loan, with APR not exceeding 10-15%, with small amounts for a short period of time.