Typical example of total consumer credit annual percentage rate calculation (for natural persons who have acquired leased assets for personal, family or household purposes, but not for business or professional purposes):
Assumptions: Price of the car selected – 15 000 EUR, contract term – 60 months, advance paid by the Client – 20 percent, financed amount – 12 000 EUR, interest rate – 3 percent, contract fee – 150 EUR (monthly instalment – 215.62 EUR).
In order to receive consumer credit, the Client must have (open) an account with Swedbank, AB, with a set minimum daily services fee of 0.70 EUR per month. The client must also, at his/her own expense, buy insurance for the car at an insurance company acceptable by Swedbank under conditions set out in the agreement (insurance cost is not included in the total consumer credit annual percentage rate). Total consumer credit annual percentage rate is then equal to 3.7 percent, and the total Consumer Loan cost payable a receiver would amount to EUR 13 098.49.
Calculations of the total consumer credit annual percentage rate and the total amount payable by the borrower are based on the assumptions that the agreement will be valid for the entire duration of the agreement, the total credit amount will be paid out on the day of signing the agreement, the parties to the agreement will fulfil their obligations arising from the agreement by respecting the terms and conditions set out therein, the annual interest rate, the amount of fees and other charges paid by the Client will remain the same as at the time of concluding the agreement and will continue to be applied until its expiry.