Spotrebný úver is a consumer loan. This is a bank loan for personal needs, such as electronics, repairs, a car, or other expenses. Unlike a mortgage, it usually does not require real estate as collateral, but the interest rate is typically higher.
What to pay attention to before signing
- RPMN — Real Annual Percentage Rate (APR). This is the total cost of the loan, including all fees, not just the interest.
- Total overpayment — how much you will pay back in addition to the amount you received, over the entire loan term.
- Penalties — for late payments or early repayment.
Contracts are often signed quickly in a store or online. Read the terms carefully. Do not focus only on the monthly payment amount. A small payment might mean a long loan term and a large overpayment. Before signing, compare offers from several banks and do not borrow more than you can realistically afford to pay each month.
