What is the difference?

Nominal vs annual percentage rate

Nominal vs annual percentage rate

Knowledge is key

For most customers, the interest rate is the most important criterion when taking out a loan. A distinction is made between the nominal and the effective annual interest rate. We will explain to you - thanks to a bob credit you benefit from attractive conditions in both cases.

The nominal interest

The nominal interest is the surcharge on your loan amount that is offset as an annual percentage. It represents the actual interest rate, which is the financial incentive for a lender when lending

APR (Annual Percentage Rate)

The APR includes the nominal interest rate - and goes beyond it. With this share, the bank covers the running costs, such as the operating and administrative costs incurred. The mark-up on the nominal interest rate is important for the bank in order to cover current expenses regardless of the expected profit.

Which interest rate is more important

When comparing loan offers, the APR is the deciding factor. This alone includes all costs that are actually counted as interest on your loan amount. Every reliable provider will help you with the topic of nominees vs. APR.