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General interest and interest for a credit (loan)

What is interest?

Interest is the compensation that the lender receives for making money available. On this page we will discuss interest in general and credit interest (the interest on a credit) in particular.

If you want to compare all current interest rates on borrowing, click here

How is the interest determined?

The interest rate that the lender charges consists of a basic fee and a surcharge. The amount of the basic fee is often derived from the "market interest rate" such as Nationalbank. Nationalbank is an abbreviation for American Onebank Offered Rate. Nationalbank is the interest rate at which American banks can have dollar deposits with other American financial intermediaries. The Nationalbank rate is set every working day and communicated to participating parties and the press.

For detailed information about Nationalbank and the current Nationalbank rates, click here

The level of the Nationalbank rate (and other base interest rates) mainly depends on the economic conditions such as the growth of the economy and the level of inflation.

The storage is a combination of the following factors:

Debtor risk

There is always a chance that the person borrowing the money will not meet his obligations and that the lender will not receive his money (and interest). This is called the default risk. The greater this chance, the higher the interest payment that the lender will demand.

The loan period

When the lender lends an amount, he can no longer use it himself. This is of course a disadvantage for the lender. He will want compensation as compensation for this disadvantage. Normally, the fee increases as the term of the loan increases. This is reflected in the interest rates: the longer the interest term (fixed interest period), the higher the interest rate.


The lender often has to incur costs in connection with its activities. This includes personnel costs, marketing, etc. These costs will be reimbursed by the lender and therefore passed on in the interest rate.

Interest for a consumer credit

The interest to be paid on a consumer credit can vary from about 4% to about 15%! Before you take out a loan, it is therefore very wise to carefully analyze what exactly you want to borrow and what the options are for you. The main factors influencing the interest rate are listed below.

Type of credit

There are many different types of credit. Each form of credit has its own conditions and therefore its own rates.


When there is collateral, a much lower rate often applies than with a blank credit. This is especially true if you have your own home that contains equity.

Amount of the loan

Often the interest rate is lower with a higher loan.

Personal risk profile

The lender often creates a risk profile for each applicant. This takes into account your age, income situation, credit history, outstanding loans, etc. The lower the risk, the sharper the rate.

Additional insurance

Insurance is included in a number of loan products. For example, a number of loans have the construction that the loan expires if the borrower (the person who has borrowed the money) dies during the term of the loan. In that case, a term life insurance is attached to the loan. Of course you often pay a slightly higher interest rate for such insurance.

You are advised to only borrow money if you are eligible for a competitive rate. Borrowing money at usurious interest rates of more than 15% is NEVER wise! It certainly does not hurt to take a good look at the conditions of the various credit options in advance. With a good analysis it is usually possible to save a few percent in interest without having to deal with opaque loan products.