Laenukulud

Laenukulud (loan costs) are the charges a borrower pays in connection with obtaining and servicing a loan. They do not include the principal borrowed, but cover the cost of credit in addition to repaying the amount borrowed. Typical laenukulud include interest payments, loan origination or processing fees, ongoing account maintenance or service fees, mandatory insurance premiums tied to the loan, and any penalties for late payment or early repayment. In secured loans, additional costs may arise from appraisal, valuation, notarization, and registration of collateral, as well as ongoing collateral-related charges. Some loans also carry currency conversion fees or other administrative charges.

To compare loans, consumers are usually guided to look at the annual percentage rate (APR), which expresses the total cost of credit as an annual rate by combining interest with most fees. The actual total cost depends on the loan amount, term, amortization schedule, and whether the interest rate is fixed or variable. Awareness of laenukulud helps borrowers understand how much a loan will cost beyond the nominal rate and to distinguish cheap-looking offers that include high fees from those with lower interest but higher charges.

Regulatory context: in many jurisdictions, especially within the European Union, consumer credit laws require disclosure of APR and the total cost of credit, enabling comparison and informed decisions. Some fees may be capped or prohibited, and lenders must clearly present the cost components.