The price of a loan is the main criterion for choosing a loan proposal by a borrower. This is a monetary expression of payment for the use of borrowed money, which reflects the amount of overpayment for a loan.
What determines the price of the loan
The cost of a loan is closely related to the principle of repayment of credit relations, since the bank receives income when issuing a loan. The loan rate is defined as the ratio of the bank's income for issuing a loan to the loan amount. For example, with a loan amount of 100 thousand rubles. and the loan price of 25 thousand rubles. the annual rate is 25%.
The loan price is directly determined by the level of the interest rate. The latter is formed under the influence of the ratio of supply and demand for various types of loans. It depends on a number of factors:
- the dynamics of attracting deposits from the population, as well as the average interest rate on deposits;
- the economic situation in the country (inflation rates, etc.) - the loan rate should cover the inflation rate;
- the credit policy of the Central Bank of the Russian Federation, the refinancing rate at which the Central Bank of the Russian Federation lends to other banks;
- the average interest rate on the interbank lending market;
- the structure of the bank's assets, the larger the share of borrowed funds, the more expensive the loan;
- the level of competition in the market, which affects the demand for credit on the part of borrowers, the smaller it is, the cheaper the loan;
- term and type of loan;
- the degree of risk of the loan - unsecured loans without guarantors are characterized by a higher degree of risk and are issued at a higher interest rate.
How the real loan price is formed
It would seem that calculating the real cost of a loan, knowing the interest per annum and the loan term, is quite simple. But in this case there are pitfalls, and the real price of the loan can be several times higher than the fixed interest rate.
Loan payments are made up of payments for the repayment of the principal debt, interest on the loan, as well as commissions. The latter are often hidden from the eyes of users at the stage of concluding a contract. These can be commissions for the consideration and issuance of a loan, for opening and maintaining an account, for its maintenance.
Some banks charge additional fees for withdrawing cash (usually when using credit cards).
Also, the agreement may establish payments to third parties at the expense of the borrower. As a rule, this applies to mortgage loans, which provide for payment for the services of appraisers, insurers, notaries, etc., or for car loans (CASCO payment). All this can lead to the fact that the rate of 20% per year, taking into account all commissions, can turn into all 50%.
Separately, the cost of the loan can include fines and penalties for late payments on monthly payments. They are individual in each bank.
Recently, laws have appeared in Russian law that protect borrowers from hidden fees and interest. The bank is obliged to inform the borrower about all types and terms of loan payments.
So, according to Russian law, banks must notify the borrower of the full cost of the loan (CPS), which is expressed as a percentage. It must include all payments specified in the contract. Also, the courts prohibited banks from charging a commission for early repayment of a loan, as well as commissions for servicing and maintaining an account.
