The Annual Percentage Rate (APR) is the total cost of borrowing, expressed as a percentage of your principal. There are no origination, early repayment, late payment, or liquidation fees.
The interest rates for term loans
The APR for a term loan depends on a few factors:
- Interest payment plan type: Payment at maturity loans carry higher rates than monthly payment loans, because interest payments are deferred.
- Loan size: Larger loans qualify for lower rates.
| Loan amount | Monthly Payment (Standard) | Payment at Maturity (Standard) |
|---|---|---|
| < 250.000 € | 10,50% APR | 11,25% APR |
| 250.000 – 750.000 € | 10% APR | 10,75% APR |
| 750.000 – 2.000.000 € | 9% APR | 9,50% APR |
| 2.000.000 – 5.000.000 € | 8% APR | 8,75% APR |
| 5.000.000 – 10.000.000 € | 7,49% APR | N/A |
| ≥ 10.000.000 € | Custom | N/A |
If you plan to borrow 250.000 € or more, contact our Private team for white-glove service.
Once opened, the loan’s APR remains fixed until you refinance, consolidate, or close it.
How interest is calculated for term loans
Interest is calculated by multiplying your outstanding principal by the Daily Periodic Rate, which is the APR divided by 365 (or 366 in a leap year). With a monthly payment loan, the principal remains constant unless you make early repayments. With a payment-at-maturity loan, interest for the entire term is pre-calculated.
Terms are presented when you open the loan. For illustrative purposes (assuming no liquidations or early repayments):
- Monthly interest payments: A 10.000 € loan at a fixed 10,50% APR over 12 months would cost roughly 87,50 €/mo in interest, with the 10.000 € principal due at maturity for a total of 11.050 €.
- Full payment at maturity: A 10.000 € loan at a fixed 11,25% APR over 12 months would result in approximately 1.125 € in total interest, with principal and interest due at the end of the term for a total of 11.125 €.