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.

EURIBOR is applied on the second business day after its fixing date. EURIBOR rates are published on the website of EURIBOR-EBF.


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.