Lainaehto

Lainaehto is a Finnish term that refers to the individual clauses and conditions within a loan agreement. The word is formed from lainen meaning loan and ehto meaning condition or term, and it is used to describe the specific contractual provisions that govern borrowing.

Typical lainaehto contents include the principal amount, the interest rate and whether it is fixed or variable, the repayment schedule and loan term, any fees or charges, and the consequences of late payments or default. It may also address early repayment options, prepayment penalties, collateral or guarantees, and procedures for modifying the loan terms during its life. The precise set of terms varies by lender and loan type, such as consumer credit, mortgage loans, or business finance.

Context and regulation: In Finland, as in many jurisdictions, loan terms are governed by contract law and consumer protection rules. Lenders are expected to present clear, non-misleading information about the cost and obligations of the loan, and the overall price of credit—often expressed as an annual percentage rate (APR)—is typically disclosed. Standard terms may be subject to scrutiny to prevent unfair or opaque practices, and borrowers have the right to review and negotiate terms before agreeing.

Practical use: Borrowers should read lainaehto carefully before signing, compare offers, and ask for clarification on any terms they do not understand. Changes to loan terms can sometimes be negotiated or arranged through refinancing or amendments, though such changes can incur costs or affect eligibility. Related concepts include lainasopimus (loan agreement) and korko (interest).