Difference between interest and annual percentage rate of charge

An indicator to help you choose the available loans or credits to make them comparable. Annual Credit Adviser interest is at the same amount as RPMN.

Most clients only look at the amount of interest when deciding to choose the “right” loan or loan. However, the interest rate is not the right indicator. We will look closely at which indicator will help you to better select the available loans or loans to make them comparable.

Interest rate

Interest rate formula

If you take out a loan, in addition to the interest you pay, it also has other charges (regular or one-off). For example, it is a fee for equipment, mandatory insurance if it exists, keeping a credit account and so on. Thus, the interest rate does not give you an accurate picture of the total cost of the loan. The difference between the interest rate and the annual percentage rate of charge (RPMN) is that the RPMN indicates what other fees are associated with the loan.

Annual Percentage Rate (RPMN)

Annual Percentage Rate (RPMN)

RPMN is a number that is not equal to the annual interest rate. The RPMN is usually higher than interest and indicates how much additional funds a consumer has to pay when borrowing money from either the bank or non-bank. This is an interest rate that includes interest, which is converted into one calendar year, and takes into account not only the interest we pay on the loan or loan, but also any fees charged by the lending company. However, sanctions for non-fulfillment of debt obligations, such as reminders, are usually not included in the APR calculation. Ideally, the interest rate should match the RPMN. This would mean that there are no additional charges associated with the loan. However, this situation is not common in practice.

RPMN in Credit Adviser Euro


The annual Credit Adviser interest that is presented to you is at the same amount as the APR and you can accurately re-calculate how much the loan will cost you (if all terms and conditions are met). See what you can borrow through Credit Adviser Euro, as at website

Factors affecting RPMN

– the amount of loan or loan provided

– payment term

– Amount of costs (installments and fees related to the loan)

– information on the amount of installments and possible further payments

– Information on the maturity of each installment and others

In most cases, it can be concluded that the lower the RPMN, the more advantageous the loan. However, this is not always the case. This relationship applies only if there are two loans with identical terms, ie the same loan / loan amount and the same maturity.