So, cost of credit is composed of two components: effective interest rate and all expenses the client bears in favor of third persons.
Effective interest rate – it is nominal interest rate on credit with consideration of following factors:
– interest on credit, which the borrower pays during credit period;
– one-time additional interest, which the borrower pays under credit issuing;
– term and frequency of credit repayment.
Effective interest rate is required that the borrower has chance to compare cost of credit in different financial institutions.
Expenses in favor of third persons depend on following factors:
– type of credit;
– on existing tariffs in the regions.
List of supposed expenses in favor of third persons:
– transport expenses the client bears in a process of crediting;
– costs on processing of documents and collateral (notary office, State Register, mortgage office, DPS);
– other.
In line with requirements of the National Bank of Kyrgyzstan, information on full cost of requested credit can be gained in the financial institution we decided to cooperate.