Annual percentage rate of charge

Annual percentage rate of charge shows the total cost of the loan per year. It is given in percentages, and the smaller the percentage, the cheaper the loan.

Annual percentage rate of charge is calculated on the basis of a formula fixed in the European Union and enforced by a decree of the Minister of Finance in Estonia. The calculation of the annual percentage rate of charge takes into account the interest, contract fees, taxes and other costs that the consumer is obliged to pay in connection with the consumer credit contract and that is known and has to be known by the credit provider. The calculation does not take into account the penalties and other additional charges that may be implemented upon the delay of repayment.

Remember!

  • The consumer credit contract is void if the annual percentage rate of charge to be paid by the consumer exceeds the six month average rate of charge of the consumer loans given by credit institutions to private individuals published by Eesti Pank during the time the loan was given. The statistics is available on Eesti Pank’s webpage.