Loan and Credit

Euribor, chord, annuity, margin, prime rate and creditworthiness. When applying for a loan, you may run into the banking and financial vocabulary, which is not always the clearest one. We’ve compiled a comprehensive glossary of common concepts in the financial industry.

Annuity Loan = A general form of loan that predefines the term of the loan and the due date of the loan, but the installments change according to the evolution of the reference rate. That is, if interest rates change, the installments will be recalculated.

Chord = Chord means that the creditor comes to repay the loan and forgives a portion of the debt. Typically, a chord means lowering interest rates or canceling overdue interest on old debt.

This is called the interest rate agreement

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A chord is usually possible when the debtor has access to court debt settlement or has combined his loan with the Guarantee Fund.

Car loan = loan for the purchase of vehicle-fetched. Car loans are provided by banks, private finance companies and car dealerships (usually in partnership with banks and finance companies). You can apply for a car loan as secured or unsecured.

ASP Account = The Home Savings Account is an account sponsored by the Finnish Government for home savings and acquisition. You can open an account between the ages of 15-39. An ASP account is for the first time home buyer. The holder of an ASP account receives a mortgage loan after saving 10% of the price of the home to be purchased. Often, an ASP account holder also gets a mortgage on better terms, as long-term savings on an ASP account are a sign of regular income and good solvency for the bank.

Mortgage = Loan for home purchase

Mortgage = Loan for home purchase

Mortgage is one of the most common and long-term loans. The loan period for a mortgage is generally 25-30 years. The amount of the mortgage to be granted depends on the loan applicant’s ability to pay. In addition, a mortgage must be secured. Usually the collateral is purchased, but the mortgage can also be secured by other real estate, such as a summer cottage or securities.

Bullet loan = A bullet loan is repaid at the end of the pre-agreed loan period, but the interest is paid in regular installments over the entire loan period. A bullet loan usually has a fixed or a floating rate.

Gross Income = Total salary income, net of tax.

Euribor = Euribor is a common reference rate for euro countries published daily. There are different Euribor rates and the name of the rate refers to the time when the loan rate is being revised. If the interest rate is linked to a three-month Euribor interest rate, the interest rate on the loan will remain unchanged at three-month intervals until the next interest rate review, which will take place every three months.

Flexicurity is a very similar type of payment arrangement

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To consumer credit. Flexicurity is usually granted unsecured and loan repayment is usually flexible. In addition, Flexible Credit can be withdrawn in full or in smaller installments to your own account. If you credit your account in installments, the interest is paid only on the withdrawals and not on the entire credit.

Fixed costs = Fixed costs are costs that are beyond the control of the payer. Nor will fixed costs change in the short term. Rent and electricity bill are examples of fixed costs.

Fixed installment loan = A form of loan in which the installments remain the same, but the maturity varies according to the reference interest rate. If the reference rate increases, the installments will not be increased but the loan period will be extended.

What are and how to calculate statutory interest for delay?

 

Knowledge of terms closely linked to the world of finance is essential! That is why, today, we will address the issue of statutory interest for delay. We will answer the question: what should the calculation of statutory interest for delay be and when do they actually accrue? What formula shows how to calculate statutory interest for delay? Read on and find out how to calculate statutory interest for delay! We invite you to read.

Statutory interest for delay

Statutory interest for delay

Are you wondering how to calculate statutory interest for delay? The amount of interest you spend asleep? To begin with, let’s explain what such interest actually is.

When is statutory interest due for delay? Statutory interest for late payment is interest that may be required if we do not pay our financial obligations on time. The reason why we did this does not matter. However, it should be remembered that statutory interest for delay is only due if the liability is a cash benefit.

What is statutory interest for delay? It can be said that the payment of statutory interest for late payment constitutes some kind of compensation for the creditor.

How to calculate statutory interest for delay?

How to calculate statutory interest for delay?

Let us now turn to the main issue: what is the statutory interest for delay? What should you keep in mind? How to calculate statutory interest for delay? If you’re interested in the amount of statutory interest for late payment and you’re wondering how statutory interest counts, you have two options:

  • statutory interest calculator for delay, available online
  • using a ready formula to calculate statutory interest for delay

How do you calculate statutory interest for late payment? Which option you choose, whether it will be a calculator or a formula for statutory interest for delay, depends on you and your individual preferences. In both cases, however, the accuracy of the data used for calculations is very important. What are the statutory default interest? NOTE: if the calculation results in a higher amount of interest than the maximum amount of default interest, it will only be necessary to pay the sum equal to the sum of maximum interest for delay.

Calculation of statutory interest for delay

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We already know what statutory default interest is, we also explained what the calculation of statutory interest for delay is in practice, but what are the rules for calculating statutory interest is one thing, and the possibility of regulating it is another. What if your statutory interest for delay exceeds your financial capacity? In such a situation, you can apply to the party who is entitled to statutory interest for delay, cancellation, cancellation of statutory interest for delay, however, whether you receive an affirmative answer is an individual matter, because the decision is at the discretion of the creditor.

To sum up: what are the statutory interest for delay? In practice, what is the statutory interest for late payment? A special formula or calculator will allow you to calculate the amount of statutory interest for late payment. Information on the amount of statutory interest for delay can be very important. Of course, it is best not to allow a situation where delays occur at all.