Typical example of total consumer credit annual percentage rate calculation for car leasing (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 – 20 000 EUR, contract term – 60 months, advance paid by the Client – 10 percent, financed amount – 18 000 EUR, interest rate – 6 months Euribor (at least 0%) + 1.99% (calculated annual interest rate – 1.99%) ., contract fee – 200 EUR (monthly instalment – 316.12 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 2.55 percent, and the total Consumer Loan cost payable a receiver would amount to EUR 19 179.19.
Typical example of total credit annual percentage rate calculation for car loan and consumer loan:
If you applied for a consumer loan amounting to EUR 4 000 with credit agreement duration (and loan repayment term) of 5 years with the annual flat rate of 12 % and the following applicable fees: monthly minimum daily services fee (0.70 EUR per month); agreement administration fee of EUR 50; monthly payments EUR 88.45 using annuity method, then, the total consumer credit annual percentage rate would be 13.91 %, and the total amount paid by the Consumer Loan receiver would be EUR 5 397.58.
Calculations of the total consumer credit annual percentage rate and the total amount payable by the borrower are based on the assumptions that the Credit Agreement will be valid for the entire duration of the Agreement, the total Credit amount will be paid by the Bank to the borrowers on the day of signing the Credit Agreement, the parties to the Credit Agreement will fulfil their obligations arising from the Credit Agreement by respecting the terms and conditions set out therein, the rates and other expenses will remain the same as on the day of concluding the Credit Agreement and will continue to be applied until its expiry.