In connection with borrowing, OOP, residual debt, repayment, default interest, credit costs and much more are often mentioned. If you do not fully understand the many concepts, then find our conceptual explanations below.
In addition to the explanations of the concepts, there are also topics in which we have written decided blog posts about. These terms are not found below, but instead under our news .
Disclosure is the publication of various rights by the courts. Ie a legally binding statement that is governed by the applicable law as long as the statement is found in the dictionaries. Enlightenment is often known from housing mortgages where the mortgage lending is litigated.
OPP stands for Annual Costs in Percentages. When calculating OPP, all costs for the loan are added together. You get a percentage that tells you what the loan will cost you.
Credit costs, like ÅOP, reflect the total cost of the loan, but where OPP is expressed as a percentage per. year, credit costs are expressed in a full cash amount. All interest rates, fees, etc., are calculated together.
The interest rate is a fee calculated in percentages of the borrowed capital which, in addition to the borrowed amount, has to be paid back to the lender (creditor). It is therefore not free to borrow.
At a fixed rate, the interest rate of the loan is determined at the start of the loan and remains the same throughout the term of the loan. With a fixed interest rate you can therefore know for sure the future costs of the loan.
If you choose a loan with a variable rate, the interest rate may fall or rise over the term of the loan.
The morarent comes into force when you do not pay your loan back as agreed. If you exceed a payment date, the default will be added. This is therefore a kind of additional compensation for your late payment.
The nominal rate is the specified interest rate for a loan. The nominal interest rate is also called for the nominal interest rate. This is the raw annual rate that does not take into account fees.
Repayments are an indication of the amounts that are paid back on a loan on a regular basis. When you make a loan, it is agreed in advance how much will be paid back at a time.
The payment period tells you how often you should deduct on your loan. The payment period is set before you take the loan, and it is an agreement between you and the lender about the amount of time you have to repay.
With repayment-free loans you can choose a period of deduction during the term of the loan. This means that you will not pay repayments on your loan during the given period.
Your outstanding debt is the amount that you need to repay your loan. When paying repayments, your outstanding debt will therefore decrease.
Maturity is quite simply an expression of the full period for which the loan is to be deducted. If the loan is taken for a term of 10 years, the loan will thus be repaid over a period of 10 years.
The fair value is the value of the redeemed money you would have in hand if you sold your property here and now.
The benefit of your loan is the amount you will pay for the given period. Often, you will talk about the monthly benefit, and that is the payment you will pay each month.
The debt rate is the rate you have to pay when you take a consumer loan, ie. when you borrow money. The opposite of the borrowing rate is the credit rate, which would be the interest you received if you borrowed money.
A creditor is the person who lends money to others. If you place your money in the bank on a deposit account, you will become a creditor. The credit rate is therefore the interest you receive when you borrow.
When you raise a loan, there may be different fees. The establishment fee is a fee you pay when you create the loan. It can also be called creation fee or foundation fee.
The effective interest rate is for the borrower the total expenditure as a percentage of a given loan. For lenders, the effective interest rate is the total proceeds as a percentage of a given loan.
RKI is an abbreviation for Ribers Credit Information. RKI is a register of bad payers. If you do not pay your bills or you do not repay your loans, you risk getting into the RKI registry.
In this article, we will look into the concept of creditworthiness and what it will be for creditworthiness. Creditworthiness is quite simply a person or company’s ability to repay a loan.
A micro loan is a short term loan of between DKK 500 and DKK 10,000. You often pay back the micro loan within 30-60 days. An SMS loan is a micro loan that you can apply for.
Quick lending is another word for lending, which is pronounced in the same way and means the same. A quick loan is a fast online loan.
An annuity loan is a loan where you pay the same benefit throughout the term of the loan. This means paying less in installments on the loan at the start of the loan term than at the end.