Räniraha

Räniraha is a term originating from Finnish, literally translating to "interest money" or "loan money." It is generally used to refer to the financial sum borrowed or lent, distinct from the interest charged on that sum. In essence, räniraha represents the principal amount of a loan.

This term is commonly encountered in personal finance discussions and loan agreements within Finland. It serves to differentiate the core debt from the additional costs associated with borrowing. Understanding the distinction between räniraha and the interest (korko) is crucial for borrowers to comprehend the total cost of a loan.

For instance, if someone takes out a loan of 10,000 euros, that 10,000 euros is the räniraha. The interest charged on this amount would be a separate calculation, added to the principal over the loan's duration. While not a formal financial term in international contexts, it is a widely understood concept in Finnish financial language. The concept highlights the fundamental structure of borrowing, where a principal sum is repaid, usually with an added fee for the use of that money.