Literally a few weeks ago a shocking message appeared on one of the Polish Internet portals that one of the banks was to increase the nominal interest rate on the loan by “only” 0.1 percentage point. Interestingly, the case concerned a loan repaid in francs.
Bank collusion or economic movement?
Of course, the interest rate on the loan has increased. There is no doubt about it. It is puzzling, however, what was the motive for such action. If this increase was the result of economic calculation, it can be considered understandable. However, many customers are wondering if this is the result of a much larger campaign.
As you can guess, the goal would be a deliberate increase in the margin, which would compensate banks for the negative effects of converting franc loans into dollars. Regardless of the currency in which you plan to take out a loan, you must carefully analyze its APRC.
Growth has many names
There is a third option that is most likely. The above interest rate increase could have been caused by … the bank’s offer resulting from the construction of a specific loan agreement. Often, banks – as part of combined sales – offer an additional product, while reducing the cost of cash loans. Sometimes this decline is only temporary and limited to a year or two. This increase may therefore result from the end of the promotional period.
What does the bank say?
Considering all the above story, one thing you can be sure of is that the interest rate on the loan has increased. The bank claims that this is not the result of any “hidden increases”. In turn, the Customer indicates that it may be different. Which version is the real one? We’ll probably find out in a few weeks. If this increase did not involve any movement within the entire banking sector, it will only be temporary.
Before you take a cash loan, use a loan calculator and check the installments that you will pay.
The above story is an example confirming the thesis that panic in banking markets can cause almost anything. It is a pity that this does not always translate into reliability of information.