vertailukorkoon

Vertailukorko is a Finnish term that translates to "comparison rate" or "effective interest rate". It is a standardized way of expressing the total cost of a loan to a consumer, including not only the nominal interest rate but also all associated fees and charges. The purpose of the comparison rate is to enable consumers to easily compare different loan offers and understand the true cost of borrowing.

In Finland, lenders are legally required to disclose the comparison rate for consumer credit products such as mortgages, personal loans, and credit cards. This information must be presented clearly and prominently in advertising and loan agreements. The calculation of the comparison rate takes into account various factors, including the nominal interest rate, origination fees, processing fees, account management fees, and any other mandatory charges associated with the loan.

By providing a single, comprehensive figure, the comparison rate helps consumers avoid being misled by offers that may have a low nominal interest rate but high hidden fees. It promotes transparency in the lending market and empowers consumers to make more informed financial decisions. Understanding the comparison rate is crucial for anyone seeking a loan in Finland, as it offers a more accurate picture of the overall expense compared to just looking at the advertised interest rate.