Euribor at historical law, loan installments lower too

The interest rates on quarterly interbank loans in the Eurozone, called Euribor, have dropped to an all-time low in recent days to 0.49%.

The Association of Serbian Banks (UBS) states that most loans in Serbia, which are indexed in euro, are linked to Euribor, therefore loan instalments will be reduced too.

When asked whether banks are obliged to charge such interest on future loans or whether they will apply to loans already approved, UBS explains that Euribor is applied to each loan where it is agreed that the interest rate is expressed as a sum of the Euribor value and the interest margin charged by the bank.

It should be noted, however, that it is not possible to give an estimate of how much lower the loan instalments will be.

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“It is not possible to give such an estimate because there are different interest rates depending on the type of loan, different repayment terms, as well as different conditions in the individual banks,” the UBS says.

The UBS recommends that each client checks with their bank for specific and detailed information on the granted loan.

The Euribor represents the interbank interest rate, i.e. the price at which European banks borrow money from each other.

The European interest rate affects the price of each loan when it is explicitly stated that the interest on the loan is expressed by the value of Euribor plus the value of the interest charged by the bank.

(Politika, 26.08.2020)

http://www.politika.rs/sr/clanak/461132/Zbog-pada-euribora-nize-i-rate-za-otplatu-kredita

 

This post is also available in: Italiano

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