The third reduction in interest rates, by 0.25%, announced yesterday by the ECB, brings lower loan installments.

With the prime rate falling to 3.25%the implications are significant for borrowers who will see their loan installments further reduced.

According to the Free Press, the profit reaches up to 735.24 euros per year for a medium mortgage or up to 72.84 euros for a medium consumer.

Great beneficiaries and those who have businesswhich they see entire deductions of the interest rates to be transferred to their monthly installments.

Examples

  • An average mortgage loan, for Greek banking data, of 100,000 euros, with repayment in 30 years, will now have an installment of 559.66 euros and the profit for the borrower will reach 61.27 euros per month or 735.24 euros the time.

The longer the repayment period, the higher the interest cost, so if the same loan had repayment in 40 years, the profit would be higher.

  • For an average consumer loan of 5000 euros with repayment in 24 months, from 241 euros which was the installment until now, it will drop to 237.38 euros, with a benefit of 4.46.