# APRC – calculator, cash loan – calculate the Actual Annual Interest Rate on a cash loan

## How do you check the interest rate on a cash loan?

When choosing a cash loan, i.e. a short or long-term financial commitment paid in cash or by bank transfer, customers first pay an interest rate of between 5% and even 10%. Higher interest rates, compared to mortgage or car debt, are associated with the minimum collateral required by banks.

It should be known that the nominal interest rate may not be higher than four times the lombard rate, which is set by the NatBank of Poland. In a direct way, the interest rate on cash loans also affects the amount of interest and hence – the amount of monthly installments.

And how do you check the interest rate on a cash loan? You can view the offers of individual banks, both on their websites and stationary, in branches or in advertising leaflets. This method, however, is time consuming and inefficient, making it difficult to compare different banking products. Therefore, a much faster and more effective solution is to use cash loan calculators that collect information from many banking institutions cooperating with the service.

## What is the real interest rate on the cash loan?

The interest rate is only one indicator that you need to pay attention to when choosing a consumption commitment. The APRC value specifying the Actual Annual Interest Rate is more important. What does this mean for the customer?

The APRC, expressed as a percentage, shows the total cost to the borrower. It takes into account not only the interest rate that customers first look at, but also insurance, commissions or other fees that affect how much the loan should actually be repaid.

For example, a loan of PLN 15,000 is taken for 36 months. Its interest rate is 5.99%, but the APRC is 12.85%. Therefore, the total amount to be repaid is PLN 22,548.03.

Therefore, if you want to know the real interest rate of a cash loan, use calculators or comparison tools. Thanks to the APRC calculators for cash loans, you can quickly check these values and be able to assess which bank offer is the best for you. And how do they work?

## How does the APRC loan calculator work?

The APRC cash loan calculator available on our website is a simple and intuitive tool that allows you to check and compare the real cost of a liability incurred in a bank. How to use it?

In fact, all you have to do is enter the loan amount, loan period and interest rate in the appropriate fields. When you confirm the entered data, the system will automatically generate the results.

This is possible because the SumMoney website cooperates with the largest Polish banks and “gathers” from them information about current banking products. More importantly, these offers are constantly updated, so you don’t have to worry about the favorable opportunity being lost.

And what is presented in the cash loan calculators? Basic information about the banking product: name of the bank in which it is offered, interest rate, APRC, commission, installment amount and amount to be repaid.

Information about the APRC comparison for cash loans is displayed one below the other, so you can see at a glance where the lowest costs are.

When you choose the product you are interested in, you can contact a SumMoney expert who will help you make the final decision.

## APRC of cash loans

RSSOs for cash loans work in a similar way as calculators. They only require the identification of the most important data in order to automatically generate matching results.

Thanks to both calculators and comparison tools, you can find out what the current promotions and deals are. Bank offers often change, so it’s worth following this information on a regular basis to take advantage of low credit costs. Especially that these tools are easy to use, even when you use them on a mobile phone or other mobile device.

## How much does a cash loan cost?

To find out how much a cash loan costs, you need to pay attention to the factors discussed earlier: interest rate, commission, insurance and additional fees that affect APRC – the actual cost of the loan. It is also worth knowing that the interest rate can be fixed or variable, and installments fixed or decreasing. What does it mean?

If you choose a consumer loan with a fixed interest rate, its amount will remain at the same level throughout the repayment period. In practice, your repayment schedule will be determined in advance and therefore the installments will not change.

The variable interest rate is affected by the margin, i.e. the sum of the fixed element and the selected indicator, e.g. WIBOR, which is the benchmark for the bank. Your repayment schedule will be determined based on the current money rate on the interbank market and will be updated on a regular basis based on changes in these indicators. The most common is that when interest rates decrease, the loan becomes cheaper. It may happen, however, that interest rates will start to increase, which will also increase your interest rate.

Equal installments are the same for the entire period of paying off the debt to the bank. Each installment consists of the main part and interest. Decreasing installments decrease over time. This is possible due to the fact that interest is accrued on the remaining sum of the liability (i.e. principal). Decreasing installments are often chosen for long-term loans.

It is worth knowing that some APRC comparisons for cash loans include information on the type of interest rate and installments.

## Cash loan – what to look for?

What else should you pay attention to when choosing a cash loan? By way of payment of the liability, which may take the form of cash paid at a bank branch or by transfer to a designated bank account. In the first case, it should be taken into account that some banks do not provide cash services (this applies in particular to internet banks).

Also find out if it is possible to pay back the loan ahead of schedule and whether additional charges have been introduced. Also remember that in the event of late payment, the bank charges interest on the arrears.

Finally, you must know that the Consumer Credit Act gives you the right to cancel your loan within 14 days of completing the contract.