Lisäprosentti

Lisäprosentti is a Finnish term that translates to "additional percentage" or "extra percentage." It is commonly used in financial contexts, particularly in relation to loans and interest rates.

When a loan agreement specifies a lisäprosentti, it means that the interest rate applied to the loan will be higher than a base rate. This additional percentage is often tied to a specific index, such as the Euribor rate. For example, a loan might have an interest rate of "3-month Euribor + 1.5% lisäprosentti." In this case, the lisäprosentti of 1.5% is added to the prevailing 3-month Euribor rate to determine the total interest charged.

The purpose of a lisäprosentti is to provide the lender with a margin above the market's benchmark interest rate. This margin compensates the lender for various risks, including credit risk, operational costs, and profit. The specific percentage is a matter of negotiation between the borrower and the lender and is outlined in the loan contract.

In some cases, the lisäprosentti might be fixed for the entire duration of the loan, while in others, it could be subject to review or change under certain conditions. Understanding the lisäprosentti is crucial for borrowers to accurately calculate their repayment obligations and to compare different loan offers.