Fixed interest rate
(Loan represented in euros)With fixed interest rate loans there is no risk of interest rate variation, that is, the rate doesn’t change with the fluctuations of Euribor and Belibor (key policy rates of Europe or Serbia). Loans referenced in euros are paid out in Serbian dinars and the instalments are paid back in dinars as well, but the loans are always tied to the exchange rate (typically the medium rate on the day of the loan repayment i.e., an instalment payment), so the instalment amount can change over time with the fluctuations of the exchange rate.
This link will take you to an impact calculator with projected variations of the nominal interest rate and/or the Serbian dinar exchange rate
NBS CalculatorFrequently asked questions
What is a fixed interest rate?
A fixed interest rate is an interest rate that remains unchanged throughout the entire loan repayment period. This means that the monthly installment amount will not change regardless of market fluctuations.
What are the advantages of a fixed interest rate?
A fixed interest rate provides stability and predictability, as you know exactly how much you will pay each month. This is useful for budgeting and avoiding the risk of rising interest rates.
Can I switch my loan from a variable to a fixed interest rate?
Yes, many banks offer the option to convert a loan from a variable to a fixed interest rate. However, this may depend on the terms of the contract and the bank's policy.
Can I refinance my mortgage?
Yes, you can refinance your mortgage if you find better terms at another bank. Refinancing can lower your monthly installments or overall loan costs.
How does a fixed interest rate affect the total loan cost?
While a fixed interest rate provides security, it may be slightly higher compared to initial variable interest rates. However, in the long term, it can be more advantageous if market interest rates rise.
Can a fixed interest rate change?
Once agreed upon, a fixed interest rate remains the same throughout the entire loan repayment period. This is the main reason it is called "fixed."
How can I calculate the monthly installment with a fixed interest rate?
Use our fixed interest rate calculator to determine your monthly installment. Enter the loan amount, repayment period, and interest rate to get accurate information.
What factors affect the fixed interest rate?
The fixed interest rate can depend on economic conditions, the client's credit rating, and the bank's policy. You can always get more information from our loan advisors.
Can I repay a fixed interest rate loan early?
Early repayment of a fixed interest rate loan is usually possible, but it may involve certain fees. Check your contract terms with your bank before making a decision.