В нынешнее время финансово-экономическое the state of the state is completely determined by the state of the banking system. On this basis, the financial structure of the state should be developed with positive dynamics and strengthened, and incessantly. This need is inevitable, since banking institutions form one in relation to the other a competing confrontation, aimed at expanding the potential customer base. Banks today have an enormous range of various financial services, both for businesses and individuals. Meanwhile, the fundamental direction of banking institutions is determined by lending, the income from which, in most cases, is derived from such an indicator as the effective interest rate.
Lending to firms and individuals for anybanks is a priority way to make a profit. It is on this basis that the provision of loans for banks is the main activity. The lending itself can be carried out according to different schemes and areas: consumer loans, loans for the purchase of housing, loans for businesses and so on.
Banking institutions attract their clientsa variety of methods and stocks, among which: low interest rates and effective interest rates. In addition, banks often offer interest-free loans, comfortable schedules and original options for repaying debts. In the overwhelming number of cases, these marketing moves are a common trick of financial organizations, since no one will work at a loss. Therefore, it would seem that the effective rate on the loan will definitely bring income to the bank.
Even if the interest on the loan is minimal or there are interest-free loans, the bank will receive income from various customer service fees.
That is why every customer should know thatsuch an effective bid. If the borrower does not have a sufficient amount of knowledge and calculation skills, then this indicator should be calculated by a loan officer during consultations on the conditions for granting a loan.
The effective interest rate isthe total credit value, which includes, in addition to the nominal interest rate, the costs associated with processing and subsequent servicing of the loan. On the basis of the legislation of Russia since July 2007, all banking institutions must provide borrowers with calculations of the effective interest rate on a loan. For a client of a banking institution, this is useful in that it is possible to realistically assess the upcoming overpayments. There are a large number of variations in the calculation of the effective interest rate. The users of the World Wide Web are given the opportunity to calculate it through a specialized calculator placed on the portals of banks. In order to get a full settlement, you need to know all the indicators of payments that must be paid for the crediting period. The effective rate for the full term of crediting is distributed and is characterized by a percentage ratio from the sum of crediting.
Before a loan is issued, the borrower mustThoroughly examine all the clauses and terms of the loan contract, and in particular the section relating to the effective interest rate. It would not be superfluous one-time familiarization with several banks to make the right choice.
Naturally, not for all borrowers.The effective interest rate is the main criterion for choosing a bank. Many borrowers give preference to reliable and proven banks with a reputable reputation, even despite the high interest rate.
