Let's Define the Chosen Term

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Nominal Interest

Unlike the effective interest rate, the nominal interest rate does not take into account any additional ancillary credit costs such as fees on the part of the credit marketplace. It makes it possible to determine the pure costs charged by the lender for providing the loan. Usually, the nominal interest rate is given per year (Latin "per annum").

The nominal interest rate thus forms the basis for calculating the financial burden of the loan. It is important to note that in addition to the nominal interest rate, other factors such as the term, repayment terms and possible additional costs should also be taken into account in order to obtain a comprehensive picture of the loan conditions.

Borrowers should always check the nominal interest rate as well as the effective interest rate to make an informed decision. At Crowd4Cash, transparency is a top priority, which is why all relevant information about the loan conditions is communicated clearly and understandably. This way, borrowers can be sure that they receive the best conditions for them.