Luottokustannusprosentti

Luottokustannusprosentti, often abbreviated as LKP or referred to as the annual percentage rate (APR) in English, is a crucial metric for consumers comparing different credit offers. It represents the total cost of a loan or credit facility expressed as a percentage of the borrowed amount over a year. This percentage includes not only the nominal interest rate but also all associated fees and charges that the borrower must pay.

The purpose of the luottokustannusprosentti is to provide a standardized and comprehensive way to assess the true cost of borrowing. Without it, comparing loans with different interest rates and fee structures would be difficult and potentially misleading. For instance, a loan with a lower nominal interest rate might end up being more expensive than another with a slightly higher nominal rate if the latter has significantly lower associated fees.

Key components that are typically included in the calculation of the luottokustannusprosentti are the interest rate, origination fees, administrative costs, loan processing fees, and any other mandatory charges. However, it's important to note that certain costs, such as late payment fees or optional insurance premiums, may not always be included in the LKP calculation, depending on the specific regulations and the type of credit. Consumers should always carefully review the full terms and conditions of any loan agreement to understand all potential costs. A lower luottokustannusprosentti generally indicates a more affordable loan.