The fixed interest rate on cash loans is not popular and only a few banks offer this option. Variable interest rate based on 3M or 6M Credit Checker is much more popular (this is the rate at which banks borrow money and is calculated for various time periods such as 1 month, 3 months, 6 months, etc.).
Most often it is 3M Credit Checker and banks usually base the loan interest rate on this ratio. At the moment, we can assume the value of 1.73% plus the bank’s margin, which gives us the annual cost of borrowing.
The margin at a variable interest rate
It is fixed and the Credit Checker is variable, therefore, with possible changes in the future, our credit will increase or become cheaper. The situation is different from the interest rate we are interested in, because, with such loans, the margin and Credit Checker are variable and, in total, always give the value of the interest rate agreement.
Therefore, if one of the parameters increases or decreases, the other changes by the same amount the other way round.
It is a form of securing the amount of installments in the long term, as well as in the event of changes in the banking market. The installments of such loans are always at the same level and you can sleep peacefully, but will we get such a loan without problems?
Which banks have a fixed interest rate on cash loans?
There is not much choice here and you need to focus on the ones mentioned below. Until recently there was a bank where each loan was with a fixed installment throughout the loan period but was taken over by Millennium and currently I don’t know what it looks like there.
By definition, the bank would have to contribute to the business if Credit Checker increased, therefore the periods of these loans are usually short and are as follows.
Good Credit for each loan up to 36 months
It uses a fixed interest rate and from what it knows because this bank is based on Credit Checker6M as opposed to other banks. Terms and conditions often appear and they do not differ from those with a variable interest rate. Unfortunately, but Good Credit belongs to demanding banks and the customer portfolio must be very good.
- Good Finance offers a loan with a fixed interest rate but only for a maximum of 24 months, so with such a short period it is important that the commission charged is as low as possible. The offer is one of the best on the market because we can adjust the commission and interest rate and the APRC will come out the cheapest.
- E-Money (Update January 2020) – this bank is the only bank with a full fixed interest rate for each customer even for a maximum period of 120 months and for amounts up to USD 200,000. The offer may not be sensational, however, we can sleep peacefully and not worry about any possible fluctuations of the vibrations.
As of December 2019, the rest of the banks do not grant loans with a fixed interest rate, however, this may change because big changes are being prepared. However, if someone met another bank not listed here, please send me a message or comment and I will check and complete the list.