WHAT IS AN ANNUAL EFFECTIVE REMUNERATION RATE (AERR)?
The annual effective interest rate is the total amount of all payments paid for the creditor under the credit agreement. This rate of remuneration includes the preparation, in addition to the amount of monthly payments, fees for issuing cards, insurance payments or service charges, issuing certificates and so on. The nominal interest rate, which is expressed in your credit agreement, is an expression of the value of the credit and participation in the calculation of the monthly payment on the credit. These two types of rates will differ.