Methodology on determing the Interest Rates

The annual interest rate for loans with a floating interest rate is calculated as follows:

  Annual interest rate  


  Reference interest rate  



  but not less than the Minimum interest rate, as set in each individual
  loan contract  



Reference interest rate

EURIBOR is an average interest rate that reflects the interest rate at which banks in the Euro Zone exchange term deposits in EUR between each other. The reference rate is fixed on a weekly and monthly basis in line with the relevant maturities of deposits, and its fixings are published daily by the European Banking Federation in Brussels, Belgium.

ProCredit Bank applies as the reference interest rate on all its floating interest rate loans 6-month EURIBOR.

In setting the annual interest rate, the reference rate is applied as follows:
  • Upon contract signing – the fixing as of 3 business days before the date of contract signing/tranche disbursement;
  • For each successive interest rate period of the loan -  the fixing as of three business days prior to the due date of the preceding instalment as per the Loan Repayment Schedule.
Historic reference interest rates are listed on the Bank’s website in the order of their fixing dates.

Margin and Minimum Interest Rate

The margin and the minimum interest rate are fixed in the individual loan contract.


Examples of Interest Rate Calculation


  Example 1
Loan Currency EUR
Loan Contract Date 29.07.2014
Reference interest rate 6-month EURIBOR,
fixing as of  24.07.2014 - 0,308%


Minimum Interest Rate


Annual Interest Rate Applicable to the First Period

Reference interest rate + Margin = 0,308% + 6,25% = 6,558%

The interest rate calculated according to this formula is lower than the minimum interest rate as fixed in the loan contract; therefore the minimum interest rate of 6,75% is applied in the relevant period.


For more detailed information, see  Interest Rate Methodology.

Reference Interest Rate for Date 06/23/2017

3 months - 0.10200% 12 months - -0.16300%
  6 months - -0.27300%
12 months - 1.73344%
  6 months - 1.44500%