Please note, that by the use of financial services you assume financial obligations. Improper execution of financial obligations may adversely affect your credit history and raise the cost of borrowing, and it can also cause initiation of enforced recovery.
1A typical example for mortgage: If the total amount of a home loan being taken out related to real estate is EUR 60,000, when the duration of the credit agreement is 22 years with a 2.09 per cent variable annual interest rate, paying a one-off loan agreement administration fee established by the bank of 0.35 per cent of the credit amount (EUR 210), the minimum daily service fee (EUR 0.70 per month), the mortgage registration fee (EUR 31.28) and annuity mortgage payments, then the annual percentage rate of charge would be 2.2 per cent, and the total amount paid to the borrower would be EUR 75,478. The total number of loan payments would be 264, and the amount of each instalment would be EUR 284.
The annual percentage rate of charge, the total amount payable by the borrower, the total number of loan payments and the amount of each instalment are calculated under the assumption that the credit agreement will be valid for a period equal to the duration of the credit agreement, that the entire loan will be paid out on the day that the agreement is signed, that the parties will fulfil all of their obligations properly, and that the variable interest rate, fees and other costs will remain the same as at the time of conclusion of the credit agreement and will continue to apply until the end of the credit agreement. A customer shall also bear the costs of property insurance and appraisal. These costs depend on the individual characteristics of collateral and, therefore, are not included in the total credit price in the example above.
The loan must be secured by mortgage of real estate acceptable to the bank, and the mortgaged property must be insured by concluding an insurance agreement. A report by an independent property appraiser may be required on the value of the collateral. The costs of property insurance and appraisal depend on individual characteristics of collateral, and shall be prescribed by agreements you may have with the relevant service providers.
By using these financing services, you are assuming financial obligations. Improper fulfilment or non-fulfilment of financial obligations may have a negative impact on your credit history and make borrowing more expensive; you also risk losing ownership rights to the mortgaged real estate.
Besides, a loan administration fee may be charged at the time of entry into a credit agreement. Loan administration fees and other fees are provided here.
2Example of calculation of the annual percentage rate of charge. If you applied for a consumer loan amounting to EUR 3 000 with credit agreement duration (and loan repayment term) of 5 years with the annual flat rate of 16 % and the following applicable fees: a minimum daily services fee (EUR 0.70 per month) for natural persons‘ as established by the Bank; agreement administration fee of EUR 45; monthly payments EUR 74 using annuity method, then, the total consumer credit annual percentage rate would be 18.8 %, and the total amount paid by the Consumer Loan receiver would be EUR 4491.
Calculations of the annual percentage rate of charge and the total amount payable by the borrower are based on assumptions that the total credit amount will be disbursed by the Bank to the borrower on the day of signing the credit agreement and that this amount will not be repaid until the end of the credit limit validity term, the parties to the credit agreement will fulfill their obligations arising from the credit agreement in observance of the terms and conditions established therein, the annual interest rate, the amount of fees and other charges will be the same as at the time of concluding the credit agreement and will apply further until the expiration of its validity.
3Insurance services are provided by Swedbank Life Insurance SE Lithuanian Branch and Swedbank P&C Insurance AS Lithuanian Branch through the representative Swedbank, AB. Insurance rules are available at www.swedbank.lt.
4Example of a standard annual percentage rate calculation: granted credit limit – 1500 EUR, when credit agreement period is 42 months, monthly amount of the principal of 375 EUR is paid (in case of fixed payment credit card, the following is applicable: credit agreement period of 36 months, credit repayment period of 24 months, monthly amount of the principal of 75 EUR), also fixed annual credit interest rate of 19% is applied, monthly minimum daily banking fee for private persons as established by the Bank is paid, monthly bank account administration fee and one-time card issuing fee is paid, then, the total consumer credit annual percentage rate would be:
- Standard credit card – 23 %, and the total amount paid by the consumer loan receiver would be EUR 2552.
- Gold credit card – 24.9%, and the total amount paid by the consumer loan receiver would be EUR 2627.