How the loan interest rate is formed? | Luminor

The interest rate is composed of the fixed part and variable base rate.

Fixed part of the interest rate

  • Is determined for each client individually
  • Depends on the customer's income, cooperation with bank
  • Depends on the payment discipline, credit history
  • It is fixed for the entire term of the contract
  • The client can affect the value by itself

Variable Interest Rate

  • Variable part of the interest rate consists of the short-term interest rate, or EURIBOR. This part is subject to change after expiry of certain periods, which are previously agreed between the customer and the Bank.
  • We offer 6 month EURIBOR, which changes every 6 months, depending on the fluctuations of EURIBOR
  • EURIBOR is applied on the second business day after its fixing date. It should be noted, that changes in EURIBOR also affect the monthly repayment of the loan. For example, as the EURIBOR rate rises, the monthly payment will also increase and vice versa.
  • EURIBOR administrator is European Money market institute (EMMI).
  • EURIBOR rates are published on the EMMI website.


For more information on historical values of the Floating base rate on loans, where the calculation of interest rates is based on the ICE Custom Index Q973 (before till 01.01.2018 Bloomberg European Banks Funding Margin Index), see here.